Helping Canadians with Disabilities and Their Families Save for the Future
WITH A REGISTERED DISABILITY SAVINGS PLAN (RDSP), YOU COULD RECEIVE UP TO $90,000
What is an RDSP?
• The RDSP is a savings program that helps people with disabilities and their families save for the future.
• The money in an RDSP earns interest tax-free until you take it out.
• The Government of Canada can contribute up to $90,000 in an RDSP through Canada Disability Savings Grants and Canada Disability Savings Bonds.
Who can open an RDSP?
• To become a beneficiary of an RDSP, you must be a Canadian resident, be eligible for the Disability Tax Credit and have a valid Social Insurance Number (SIN).
• Parents, guardians, legal representatives or public departments can open an RDSP for a child under the age of majority. • In some cases, a qualifying family member can open and manage an RDSP for a beneficiary who is above the age of majority. This is allowed if the beneficiary may not be capable of entering into a contract or has no legal representative. A spouse, common-law partner or parent of a beneficiary can be a qualifying family member. This will apply until 2018. How do the contributions work?
• With written permission from the beneficiary, anyone can contribute to an RDSP.
• There is no limit to how much you can contribute each year, and the lifetime total is $200,000.
• Bonds and grants received from the Government and interest earned do not count toward the annual or lifetime limits.
• Beneficiaries, their family and friends can contribute to an RDSP until the end of the calendar year the beneficiary turns 59.
• The beneficiary is eligible for grants and bonds until December 31 of the year they turn 49. This gives earnings enough time to grow. What are the benefits of an RDSP?
• You can get up to $90,000 for your RDSP from the Government of Canada through the Canada Disability Savings Grant and the Canada Disability Savings Bond.
• RDSP income and assets do not affect federal government benefits you receive, such as the Canada Child Tax Benefit, the Goods and Services Tax credit, Old Age Security and Employment Insurance.
• All provinces and territories fully or partially exempt Registered Disability Savings Plan (RDSP) assets and income.
Contact your provincial or territorial government to make sure you get the most up-to-date details.
GETTING MORE WITH THE RDSP
How does the Canada Disability Savings Grant work?
• The Government will match the contributions made by the beneficiary, their family and friends. The matching rates depend on the beneficiary’s family income. If the beneficiary’s family income is about $87,900 or less, each year the Government will match the first $500 at a rate of 3:1, for a maximum of $1,500. The next $1,000 in contributions will be matched at a rate of 2:1, for a maximum of $2,000. If the beneficiary’s family income is more than about $87,900, the Government will deposit $1 for every $1 contributed each year, up to a maximum of $1,000 a year.
• The Government will contribute up to $3,500 per year through the grant, to a lifetime maximum of $70,000.
How does the Canada Disability Savings Bond work?
• The Government will put up to $1,000 per year into an RDSP, up to a maximum of $20,000 over the beneficiary’s lifetime.
• The beneficiary does not need to contribute to the RDSP to get the bond.
• The bond amount depends on the beneficiary’s family income. If the beneficiary’s family income is about $25,500 or less, the Government of Canada will put $1,000 into the RDSP each year. If the beneficiary’s family income is between about $25,500 and $43,900, the Government of Canada will put in a portion of the $1,000. As your income increases, the amount of bond will decrease. Where are RDSPs offered in Canada?
• The RDSP, the grant and the bond are available all across Canada.
To open an RDSP, call any of the following financial institutions:
Bank of Montreal
Bank of Nova Scotia
Central 1 Credit Union (Ontario and British Columbia)
CIBC Securities Inc.
Community Trust Company
Global Growth Assets Inc.
Investors Group Trust Co. Ltd.
Les Fonds d’investissement FMOQ (Quebec)
Mackenzie Financial Corporation
National Bank Direct Brokerage
The RBC Royal Bank
TD Canada Trust (TD Waterhouse)
For more information on the RDSP, the grant, the bond and participating financial institutions: Call: 1 800 O-Canada (622-6232) TTY: 1-800-926-9105 Visit: www.esdc.gc.ca/disabilitysavings Email: email@example.com RDSP
You can “catch up” on missed grants and bonds for up to 10 years.
Missed grants and bonds will be paid up to a maximum of $10,500 and $11,000 a year, respectively.
You can receive grants and bonds until December 31 of the year you turn 49.
You don’t need to contribute to your RDSP to get the bond. The RDSP does not impact other federal government benefits.
RDSPs can be used for any purpose. RDSP earnings grow tax-free until withdrawn.