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What is the Registered Disability Savings Plan (RDSP) ?

The RDSP was introduced in the 2007 federal budget for people who qualify for the Disability Tax Certificate. It is a special savings

plan supported by the Canadian Government. It was designed to provide for long term financial security of a person with disabilities. Contributions with the added benefit of government grants of up to $70,000 and bonds of up to $20,000 combined with tax deferred growth make RDSP's a powerful investment tool for people with disabilities. The person for whom the benefits of an RDSP accrue is referred to as the Beneficiary.

Any person can be a beneficiary if they:

- Have qualified for the Disability Tax Certificate - Have a valid social insurance number

- Are a Canadian resident

- Are under age 69

Only one RDSP per person is allowed.The person who establishes an RDSP is referred to as the account "holder". However anyone can contribute to an RDSP. An adult who qualifies can be an account holder and

a beneficiary. If the beneficiary is a minor the legal parent can be an account holder.

RDSP Value Just call 1 877 382-1986

There is no annual contribution limit however the maximim lifetime contribution limit is $200,000. The maximum Canada Disability Savings Grant (CDSG) is $3,500 per year and a Canada Disability Savings Bond (CDSB) up to $1,000 per year based on the net family income.

The Definition of net family income.

If the person with the disability is under age 18, the net family income is defined as the parent’s net income. As soon as the person reaches age 18, the person with the disability’s own net family income is used. If the person and/or their family have a net income of less than the annual posted income they are eligible for the maximum federal matching grants, of 300% on the first $500 of annual contributions and 200% on the next $1,000 of annual contributions. Families with a net family income of less than the minimum posted net family wll be eligible for a Disability Savings bond. The federal government will contribute $1,000 a year into a Registered Disability Savings Plan with no contributions from the individual or their family.

Withdrawals from the plan

Lifetime Disability Assistance Payment (LDAP) The RDSP must be converted into a LDAPin the year the beneficiary turns age 60. The LDAP is an annual or monthly payment that once started must be paid until the plan is terminated or the beneficiary dies.

Disability Assistance Payments (DAP) is a lump sum payment from an RDSP to the beneficiary. DAPs may be requested by the beneficiary and can be used for disability or non-disability related expenses.

RDSP amounts will not affect eligibility for provincial disability benefits. In addition RDSP amounts or payments will not effect GST rebates or Old Age Security.

How can LifeTRUST Planning help?

Ensure the beneficiary of an RDSP qualifies for the Disability Tax Certificate Recover income taxes that can be contributed into an RDSP Show you how the government can fund your child's RDSP Show you how to maximize your child's RDSP contributions Show you how a one time deposit can maximze the grants and bonds



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