People with disabilities and their loved ones face a distinct set of financial challenges throughout their lives. To help address these challenges, in 2008 the Government of Canada introduced the Registered Disability Savings Plan (RDSP). Designed to help build long-term financial security for disabled persons, the RDSP makes it easier to accumulate funds by providing assisted savings and tax-deferred investment growth.
Once an RDSP is opened, any $1 that is deposited could be matched by the federal government up to $3. For example, if $1500 is deposited in an RDSP, the government could match with up to $3500! If your friend or relative is living on a low-income or disability benefits, the government will put an additional $1000 per year with no contributions required. By helping your family member or friend, you are helping them plan for a brighter future.
A Canadian resident under the age of 60 who is eligible for the Disability Tax Credit (DTC) is eligible for an RDSP. The DTC is available to individuals who have mental or physical impairments that markedly restrict their ability to perform one or more of the basic activities of living (i.e., speaking, hearing or walking). The impairment must be expected to last a period of one or more years, and a physician must certify the extent of the disability. Individuals can apply to the Canada Revenue Agency (CRA) for the DTC using form T2201.
To qualify for an RDSP, you must:
* Be eligible for the Disability Tax Credit
* Be a resident of Canada
* Be less than 60 years of age
* Have a valid SIN
Investment Fund Advisor | Investia Financial Services Inc.
Sales Manager & Financial Consultant | Excel Insurance Agency Inc.
80 Acadia Ave., Suite 205, Markham, Ontario. L3R9V1
This article is for general information only and is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. Please consult an appropriate professional regarding your particular circumstances. This article does not constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it is unlawful to make such offer or solicitation. References in this article to third party goods or services should not be regarded as an endorsement of these goods or services. This article is intended for Ontario, Canadian residents only and the information contained herein is subject to change without notice. The owner of this article is not liable for any inaccuracies in the information provided.
Samuel Li is a financial consultant in Ontario, Canada. Since 2005, Samuel has started his financial advisory business with the intent to assist families and small business owners in making the right financial decisions. He has great passion in sharing his insights and knowledge on investments, life insurance planning and health & dental coverages. He believes building assets and protecting the financial future is the core in financial planning.
For more financial ideas: