Special Needs Services
What is Registered Disability Savings Plan (RDSP)?
The Government of Canada introduced the Registered Disability Savings Plan (RDSP) back in 2008. To address the financial challenges that families with special needs may be facing or have faced. The main purpose is to assist Canadians with a disability to enhance their savings in the long run. Similar to other registered plans (i.e.: RRSP, TFSA, RESP), money within the RDSP may grow on a tax-deferred basis until withdrawal. The Government offers the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB).
What is the Canada Disability Savings Grants (CDSGs)?
To encourage families to start savings for the disabled person, the Government of Canada provides the Canada Disability Savings Grants (CDSGs). This is a matching grant that the government will deposit into the RDSP account. The CDSG is a matching grant with a lifetime maximum of $70,000. Grants will be payable until the end of the year in which the beneficiary reaches age 49.
What is the Canada Disability Savings Bonds (CDSBs)?
To provide even more support to low-income families, the government offers it’s Disability Savings Bonds. The CDSB is an amount paid to qualified low-income beneficiaries, with a lifetime maximum of $20,000. Up to $1,000 can be paid annually.
Unlike the matching grants, CDSB does not require any contribution. The government will solely look at the net family income to determine whether one is eligible for it.
These savings bonds will be payable until the end of the year in which the beneficiary reaches age 49.
How does it Work?
For every $1 put in an RDSP account, the federal government can (if your family income is below $91,831) match with up to $3! This is the Canada Disability Savings Grant (CGSG).
The federal government also offers an additional grant, and will put in $1,000 each year for 20 years! This is the Canada Disability Savings Bond (CDSB).
Who is eligible?
To set up an RDSP account, you must:
• Be a Canadian resident
• Have a valid SIN
• Be less than 60 years of age
• Be already approved with the Disability Tax Credit
Note: If you have not yet been approved for the Disability Tax Credit, you must apply with CRA. Feel free to contact us for any questions relating to claiming the Disability Tax Credit, and we can put you in contact with a certified professional that can assist you.
Please contact us to set up, transfer or inquire about your RDSP account.