RDSP

  • People under the age of 49 who have been approved for the disability tax credit are eligible to open an RDSP. A financial planner is required to open your plan.
  • Brematson Disability Advocates can connect you with a financial planner to guide you through the process.
  • The RDSP is a long-term savings plan that benefits people with disabilities, and their families, in saving for their long-term financial needs in a tax-deferred environment. The RDSP combines individual or family contributions with government grants and bonds. By investing wisely, the RDSP can grow into a significant asset.
  • The Federal government has a matching program that provides for a Canada Disability Savings Grant.
  • For low-income Canadians, the Canada Disability Savings Bond provides up to $1,000 per year with no contributions required.
  • Savings in an RDSP grow tax-deferred, although contributions are not tax-deductible.
  • The money coming out of an RDSP can be used for any purpose for the benefit of the plan’s beneficiary.
  • Withdrawals from an RDSP are referred to as Disability Assistance Payments. Withdrawals must begin by the end of the year the beneficiary turns age 60. Payments from the RDSP do not affect eligibility for Federal Government benefits such as the GST credit, OAS, GIS, CPP and the Child Tax Benefit. In Manitoba social assistance programs have also exempted the RDSP assets and income.
  • Contributor qualifications:
    • A person with a disability, who is of the age of majority (18 or 19 depending on the province) and has the legal capacity to manage his or her finances; or
    • The parent of a child with a disability; or a guardian who is legally authorized to act on behalf of a person with a disability.
    • As of 2011, upon the death of the parent or grandparent of a financially dependent child or grandchild with a disability, some or all of the deceased individual’s retirement savings can be transferred tax-free to their de-pendant’s RDSP.