Introduced by the federal government in 2008, Registered Disability Savings Plans (RDSPs) are long-term savings plans specifically designed to benefit persons with disabilities. At PooranLaw, we can provide the guidance you need to incorporate RDSPs into your estate plan.
Both government and personal contributions can be made to an RDSP, and no tax will be paid on the investment income that accumulates until it is withdrawn from the plan. A lifetime maximum of $200,000 in personal contributions can be made, while government contributions – in the form of the Canada disability savings grant and the Canada disability savings bond – can total up to $70,000. To be eligible to open an RDSP, an individual must have been approved for a Disability Tax Credit Certificate and must be a Canadian resident with a valid social insurance number. The plan must be opened by December 31 in the year in which the individual turns 59.
Contact us to find out more about Registered Disability Savings Plans.