The Registered Disability Savings Plan (RDSP) was designed to help people with disabilities to build long-term financial security. There are a distinct set of financial challenges that people with disabilities and their loved ones must overcome. This plan was first introduced by the Government of Canada in 2008 and makes it easier to accumulate funds by providing assisted savings and tax-deferred investment growth.
Key benefits of an RDSP include:
- Money contributed grows tax free.
- Contributions can be matched, based on family income, with up to $3,500 a year in Canada Disability Savings Grants and up to $1,000 a year in Canada Disability Savings Bonds.
- The total lifetime contribution for each beneficiary is $200,000 with no annual contribution limits.
In order to qualify, the beneficiary of an RDSP must: be eligible for the Disability Tax Credit, be a resident of Canada, be less than 60 years of age, and have a valid social insurance number.
Qualified investments for RDSPs include cash, stocks, bonds, GICs, mutual funds and a variety of other investments.
Please contact PlanWright Financial if you have any questions on Registered Disability Savings Plans and any other product or service that we offer.
*Mutual funds are offered through Credential Asset Management Inc. The information contained herein was obtained from sources believed to be reliable; however we cannot guarantee that it is accurate or complete. The article is provided as a general source of information and should not be considered personal investment advice.