We are quickly approaching that time of year again…tax time. As such, we thought we would take this opportunity to briefly discuss the Registered Disability Support Plan (RDSP). This Government of Canada program is specifically designed for individuals with disabilities in order to assist them in saving for their future.
To be eligible an individual must:
- Qualify for the Disability Tax Credit
- Be 59 or younger as of December 31 of the current year
- Be a resident of Canada
- Have a valid Social Insurance Number
There are two ways that the Government of Canada assists individuals with saving for this program. The first is the Canada Disability Savings Grant along with the Canada Disability Savings Bond. The savings grant matches personal contributions to the RDSP, while the savings bond provides funding to those with moderate to low income
The RDSP does not affect entitlement to Old Age Security or GST credits. Contributions can grow tax free in the account until they are withdrawn, at which time they will be considered income. Please note there are limits to contributions and income qualifications that need to be met for the Grant and Bond. For more information and details please visit www.servicecanada.gc.ca/eng/goc/rdsp or speak to your local financial advisor.