WELCOME to the home of RDSP advisor An information source for the Registered Disability Savings Plan - RDSP    Starting in 2008 the Canadian Federal Government will contribute up to $90,000 towards the pension of the disabled member of your family. There are hundreds of thousands out there who qualify, but they must apply to get it.  See if your province will allow to have the benefits of RDSP without claw back on your provincial social assistance.   Enter by selecting your province  It enables the website and activates all links.

 RDSP FACTS SHEET

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The Registered Disability Savings Plan (RDSP),

which was included in the federal budget this spring, is one of the most significant pieces of legislation affecting people with disabilities in recent history.  The RDSP represents a way for families to provide for the future financial security of their family members with disabilities. It will give families and people with disabilities more control in their lives.  As many as 745,000 Canadians with disabilities and their families could benefit from RDSP in all provices of Canada  ( Alberta NS Manitoba NL  British Columbia Quebec  PEI Saskatchewan  Ontario  New Brunswick  Prince Edward Island ON Newfoundland  Labrador QC Northwest Territories SK  Nunavut YK NU NT Nova Scotia PE NB MB BC Yukon AB)The RDSP, is the result of an initiative advocated by a group of organizations led by the Vancouver-based Planned Lifetime Advocacy Network (PLAN) and its affiliates (Lifetime Networks Ottawa is one of them), and the hard work for the past five years of a dedicated team led by PLAN’s founder and President, Al Etmanski. RDSP consists of three components: contributions by the family and friends, RDSP grants and RDSP bonds by the Canadian Federal Government. Use our RDSP calculator - RDSPcalculator to caculate the benefits!

RDSP's salient features are:

- RDSP Eligibility

- the beneficiary in all provinces in Canada ( NL YK Alberta BC AB  British Columbia  SK MB Manitoba On Saskatchewan Ontario QC  Quebec New Brunswick NS Nova Scotia  Prince Edward Island NU Newfoundland  PE Labrador PEI  Northwest Territories  Nunavut  NB NTYukon )  must qualify for the ‘disability tax credit’ (DTC) or disability amount in the Income Tax Act (ITA) and must be approved by Canada Revenue Agency (CRA) as being ‘markedly restricted’ in the activities of daily living in one or more of several ways
 - be a Canadian resident  - have a SIN number RDSP contributions - are not tax deductible RDSP contributions are permitted up to age 59 of the beneficiary - there is a lifetime maximum of $200,000 for  RDSP contributions - there is no annual limit for RDSP contributions anybody can contribute an RDSP trust fund : family members, friends, even the beneficiary no refund of RDSP contributions to contributors interest accrues tax-free whithin in the RDSP fund. 
- Use our RDSP calculator - RDSPcalculator to caculate the benefits!

RDSP - Registered Disability Savings Grants (RDSG)

RDSP grants are income sensitive there is matching of RDSP contributions up to $1,500 at the rate of 100%-300% based on the family income - if the family income is less then $74,357 then the first $500 is matched at the rate of 300%, the next $1,000 @ 200% - for family income above $74,357 the first $1,000 is matched at the rate of 100%
- the maximum amount of the  RDSP grant in any year is $3,500  - there is lifetime limit of $70,000 for RDSP grants
- RDSP grants are given up to age 49  RDSP grants are locked in for 10 years

RDSP - Registered Disability Savings Bonds (RDSB)

 RDSP bonds are income sensitive, the family income most be less then $36,174 to receive it in any given year the maximum amount of the RDSP bond is $1,000 in any year there is a lifetime limit of $20,000 for RDSP bonds if the family income is less then $20,833 the RDSP bond is $1,000  if the family income is between $20,833 and $36,174 the amount of the RDSP bond diminishes with increasing income until the upper limit of the scale, $36,174 is reached RDSP bonds are paid up to age 49  RDSP bonds are locked in for 10 years

Withdrawals from the RDSP plan:

can be started any time after the age of 27 must start at age 60 once started must continue  the maximum annual payout from the RDSP plan is based on the life expectancy of the beneficiary subject to the available - not the 'locked in' - RDSP grants and RDSP bonds in that particular year one-time payout are allowed under certain conditions, but must be specified at the time the RDSP plan is set up 

Closing the RDSP plan: 

The RDSP plan can be closed at any time  on closing he following amounts will be paid to the beneficiary or its estate: RDSP  on tributions and their eared interest RDSP grants and RDSP bonds that have been in the plan for 10 years or more  'locked-in' RDSP grants and RDSP bonds (portion that has been in the plan less then 10 years) and interest generated by them will be returned to the government . 
Use our RDSP calculator - RDSPcalculator to caculate the benefits!

Taxation (RDSP): 

capital contributions withdrawn from the RDSP will not be taxed, as the tax has already been paid on these sums the following will be taxable in the hands of the beneficiary, as they are withdrawn from the RDSP plan: Accumulated investment income on family's RDSP contributions  Government RDSP grants, RDSP bonds and accumulated investment income on them 

Availability: (of RDSP plan) 

it is expected to be available from licenced financial institutions as a product by the late summer of  2008 in all parts of Canada      ( NT Alberta  NS British Columbia MB PEI Manitoba  SK Saskatchewan On Ontario  QC Quebec NB New Brunswick AB Nova Scotia Prince Edward Island NL Newfoundland  NU Labrador  Northwest YK Territories Nunavut BC   Yukon PE )           
Use our RDSP calculator the simple RDSPcalculator to caculate the benefits!

The full impact of the RDSP on ODSP (in Ontario ON)

income still has to be determined. It is still unknown whether people will be able to receive income from an RDSP  (in Ontario ON) without claw-backs to their Ontario Disability Support Plan (ODSP) monies (in Ontario ON) .  The Report of the (federal) Minister of Finance’s Expert Panel on Financial Security for Children with Severe Disabilities, of December 2006, (A New Beginning), recommended the following (re: RDSP (in Ontario ON) ); Check out our RDSP calculator: demo RDSPcalculator! Recommendation #15:  That negotiations be commenced with the provinces and territories as soon as practicable with a view to having Registered Disability Savings Plans entirely exempted from asset tests in provincial and social assistance regulations and other asset tested programs and that Disability Savings Payments be exempted from any claw-back under the social assistance income calculation rules at least to the extent that the Disability Savings Payments and the provincial or territorial assistance payments combined do not exceed the Poverty Line as defined by the National Council on welfare for the particular province or territory.  Use our RDSP calculator -to caculate the benefits!  Will the provincial government adopt this recommendation (about RDSP)? Based on policies announced in the most recent provincial budget which will eliminate the claw-back to the federal Child Tax Credit for ODSP recipients (in ON)  , we have reason to hope. By implementing recommendation #15, the province of Ontario (ON) would be adopting the same stance and applying the same principles to RDSP payments as it is doing for the child tax credit benefit.  Use our simple RDSPcalculator to caculate the benefits! As of today  (Sept 2008)  ewfoundland Labrador, British Columbia, Saskatchewan, Yukon, and Manitoba,are the only provinces where the provincial government stated that they will allow their clients on social assistance to receive the full benefits of RDSP, as well. Ontario (ON) is not one of them!! Check out our  demo calculator the RDSPcalculator!

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Use our RDSPcalculator - the practice RDSPcalculator to caculate RDSP benefits!