Disability Savings Solutions

*Before considering an investment please request a copy of Fisgard’s Offering Memorandum that details risk. Mortgage investments are not guaranteed, returns may fluctuate and past performance may not be repeated.

Registered Disability Savings Plan (RDSP)

Overview

The Registered Disability Savings Plan (RDSP) is a Canada-wide registered matched savings plan specific for people with disabilities. Here are some basics:

Basics

  • For every $1 put in an RDSP account, the federal government can (if your family income is below $87,123) match with up to $3! This is the Canada Disability Savings Grant.
  • For people living on a low-income (less than $25,356), the federal government will put in $1000 each year for 20 years! This is the Canada Disability Savings Bond.
  • For people living on an income between $25,356 – $43,561, they can still receive a partial bond.

The Registered Disability Savings Plan helps parents and others save for the long-term financial security of a person with a disability. The plan structure is similar to a Registered Education Savings Plan and allows funds to be invested tax-deferred until withdrawal. Contributions to a RDSP are eligible for the new Canada Disability Savings Grant. There is also a new Canada Disability Savings Bond for individuals with lower family incomes.

The RDSP is a powerful new tax-deferred savings tool that assists planning for the long-term financial security of people with disabilities. Family and friends can contribute to someone’s RDSP. Contributions are matched by the federal government through generous Canada Disability Savings Grants. For people who have limited financial means the Canada Disability Savings Bond is available even without contributions.

A big advantage of the RDSP is that the Federal Government helps families build their RDSP with annual government contributions through the Disability Savings Grant and Disability Savings Bonds. These contributions help families attain their goal of financial security for a disabled person.

It is important to apply for the Disability Tax Credit (DTC) which is the eligibility criteria for the RDSP. If you want to set up a RDSP for yourself or a family member you must apply for the DTC before or along with your tax return.

You or your family member will qualify for a RDSP and begin receiving the Canada Disability Savings Grant and Canada Disability Savings Bond. Those with a DTC are eligible to establish a RDSP and receive the Grant and Bond. The Canadian Revenue Agency looks at your prior year tax return and DTC for the RDSP and corresponding Grant and Bond.

 


 

Or if you would rather speak with someone about the RDSP, please call 1-866-382-9255