Registered Disability Savings Plan (RDSP) in Milton
With the Registered Disability Savings Plan (RDSP), you can build tax-sheltered savings for the future. The government introduced it to encourage long-term investment growth.
The RDSP attracts matching grants and bonds from the government, which can be set up by the person with the disability or their parent or guardian. Contributions are not tax deductible, but the grants and any investment income earned in the Plan are tax-free. They will be included in the beneficiary’s income for tax purposes when paid out. Do you want support in applying for the Registered Disability Savings Plan (RDSP)? Contact Disability Dreams Group in Milton. We would be happy to help you!
Understanding the Registered Disability Savings Plan (RDSP)
The Registered Disability Savings Plan (RDSP) is a government-registered plan that covers the medical and living expenses of disabled individuals and their families or caregivers.
The goal of the RDSP was to help parents and caregivers save for a disabled individual eligible for the Disability Tax Credit (DTC). The DTC is available to people with a qualifying disability and is certified by an accredited medical practitioner.
Contributions may qualify for grants through the Canadian government's two financial programs: the Canada Disability Savings Bond and the Canada Disability Savings Grant. It is similar to the other registered plans where money grows on a tax-deferred basis, so it is tax-sheltered until the recipient begins making withdrawals.
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Benefits of an RDSP
The benefits of having a Registered Disability Savings Plan in Milton are
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There is no annual contribution limit, only a $200,000 lifetime contribution limit.
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Anyone can contribute on the beneficiary's behalf with approval from the plan holder.
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Your unused eligible bonds or grants can be carried forward from the initial date of DTC eligibility.
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Tax-deferred savings
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Unused funds from a Registered Education Savings Plan (RESP) can be clubbed with RDSP as long as the beneficiaries are the same.
Disability Dreams Group in Milton supports you every step of the way. Whether you’re navigating the application process or have questions, we’re happy to help you unlock this valuable financial benefit. Contact us today to learn more about the Registered Disability Savings Plan.
