RDSP - Registered Disability Savings Plan and the DTC
What is the RDSP?
The RDSP or Registered Disability Savings Plan, is a Canadian government regulated retirement savings plan, intended to encourage individuals under 49 with a disability or families with a child who has a disability, to save for their future. The government will pay matching grants of 300%, 200%, or 100%, depending on the beneficiary’s adjusted family net income and the amount contributed and up to $70,000 over a lifetime. An additional $20,000 (Bond) may be available to lower income families who don't have any money to contribute. RDSP funds can be used in future to supplement income, cover medical or living costs or anything else. You can get the bond if you qualify just by opening an account.
At CSR Wealth, Frank is an RDSP expert and has helped many clients apply and set one up for either themselves or their child. He helps clients with:
- Applying for the disability tax credit (required to apply for the RDSP)
- Applying for the RDSP and securing the child disability tax grant (CDSG)
- Advice on the best way to invest the funds within a RDSP to match the beneficiaries timelines and needs.
- Making withdrawals from the RDSP in a strategic and sustainable way when the beneficiary is ready to do so (usually after age 49).
The RDSP can make an incredible difference financially to someone with a disability. Don’t let the process of applying intimidate you. We’re here to help you.
Need help understanding the DTC? The Disability Tax Credit (DTC) is a non-refundable tax credit that helps people with impairments, or their supporting family member, reduce the amount of income tax they may have to pay. If you have a severe and prolonged impairment, you may apply for the credit. If you are approved, you may claim the credit at tax time. By reducing the amount of income tax you may have to pay, the DTC aims to offset some of the extra costs related to the impairment.
This also makes you eligible for the RDSP if you meet the other criteria.
