Registered Disability Savings Plan (RDSP)
IN ORDER TO BE ELIGIBLE FOR RDS, THE APPLICANT MUST HAVE THE FOLLOWING REQUIREMENTS:
– Be under the age 60 at the time of the first contribution.
– Be a Canadian citizen with a social security number
– Must be eligible for the Disability Tax Credit so that it is confirmed that plans are only started for those with either mental or severe physical impairment
Benefits of a Registered Disability Savings Plan
No tax on all money that is contributed
As long as there is written consent from the holder of the plan anyone can contribute
The Government of Canada will gladly match contributions (based on family income) up to $3500 in CDSG (Canada Disability Savings Grants) a year and up to $1000 a year in CDSB (Canada Disability Savings Bond)
Each beneficiary’s lifetime contribution is $200,000 without any annual contribution limitations.
If a parent or grandparent passes away and has a financially dependent child or grandchild, they can transfer up to $200,000.00 of their RRSP/RRIF or RPP to the dependent’s RDSP on a tax-deferred basis