The Registered Disability Savings Plan
Have a child who is disabled? Wondering how to shelter some money so your child has a stash of cash available later? The RDSP lets you grow money - tax-free - until it is needed.
Have a child who is disabled? Wondering how to shelter some money so your child has a stash of cash available later? The RDSP lets you grow money - tax-free - until it is needed.
There’s a $200,000 lifetime contribution limit but no annual limits and anyone can contribute to the plan. There are also no restrictions on when or how the funds are used. To sweeten the deal, the government offers a Disability Savings Grant. If your annual net income is less than $75,769 you can get:
If your net income is over $75,769, the grant is $1 for every $1 contributed up to $1000.
There is also a Disability Savings Bond, which provides low-income (under $21,287) families with $1,000 per year without any contributions required, so that’s 100% free money for low-income families.
Note that for individuals under 18, family income would be the combined income of the parents. However, for a person over 18, family income would be the individual’s income (plus their spouse’s income if they are married) even if they live with their parents.
To be eligible for the RDSP, the plan holder must:
If you need more information, go to www.rdsp.com or www.plan.ca.
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