Providing for a Lifetime
THE RDSP TURNS 11… What does that mean for you? This means that if you have not yet opened an RDSP, you might be permanently missing out on grant money.
The Registered Disability Savings Plan- RDSP, is a federal program which started in 2008. The program was designed as a long-term savings plan to help Canadians with Disabilities to save and financially prepare for the future. I like to help my clients understand the program by comparing it to an RRSP or a pension plan for an individual with a disability. To be eligible for the program an individual must be a Canadian or permanent resident, be under the age of 49, and be eligible to receive the Disability Tax Credit.
The federal government supports the program through matching grants that are based on Net Family Income. In addition to the matching grants there is also a bond, which is additional funding that is provided to assist in low income situations. When you establish an RDSP, the grants are available and can be paid on any unused entitlements for up to ten preceding years, dating back to 2008, with an annual maximum of $10,500. This means that if you are eligible and have not yet opened an RDSP, next year will be the first year of permanently lost contribution room.
So if you, or someone you are supporting, has been eligible and receiving the Disability Tax Credit for the last ten years, is under the age of 49, a Canadian citizen or resident and has not applied for an RDSP- you should. You might be missing out on some money that is available to create a financially secure future.
The RDSP is a complicated program and there are many components and rules that are applied. For this reason it is best to always seek the council of a financial advisor that has experience in the area of RDSP’s.
Please contact Audrey Veltri for more information on RDSP’s or planning concepts for supporting a dependent with a disability. Audrey is passionate about inspiring financial confidence in Canadian families. She specializes in planning for families supporting a loved one with a disability, and as a parent to a child with ASD, truly understands the journey.
403.256.5890 | 403.619.0410
Please contact us for more information on getting or giving help for a child with a disability and their family.