Registered Disability Savings Plan (RDSP)

A powerful savings tool similar to a registered education savings plan, but designed specifically for people living with a disability

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across Canada
CA Canada
Web http://rdsp.com/
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About the project Edit

The Registered Disability Savings Plan (RDSP) is a powerful savings tool similar to a registered education savings plan, but designed specifically for people living with a disability. The Plan allows those living with a disability financial security well into older age avoiding the poverty trap and enabling independence.

The RDSP allows anyone eligible for the Disability Tax Credit to invest up to $200,000 in savings tax-free until withdrawal, and to spend the money in whatever way will benefit them most. Family members and friends can contribute to someone’s RDSP, and help plan for that person’s long-term financial security. The federal government matches contributions through Canada Disability Savings Grants and Bonds. The Bonds – available without contributions – are especially valuable for people with limited financial means.

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What is it?

The Registered Disability Savings Plan (RDSP) is a Canada-wide registered matched savings plan specific for people with disabilities. Here are some basics:

 For every $1 put in an RDSP account, the federal government can (if your family income is below $85,414) match with up to $3! This is the Canada Disability Savings Grant

 For people living on a low income (less than $24,863), the federal government will put in $1,000 each year for 20 years! This is the Canada Disability Savings Bond

 For people living on an income between $24,863 -$42,707, they can still receive a partial bond

Anyone can contribute to an RDSP – family, friends, neighbours… it gives people who want to help a way to do so!

The money can be invested to grow – we have heard that it is the best Return on Investment available. Depending on someone’s income, any money saved immediately triples in value. Once investment decisions are made, it can really start to grow!

The RDSP is exempt from most provincial disability and income assistance benefits. It does not get clawed back and it does not reduce disability benefits payments. To find out how your province treats the RDSP, go to www.disabilitysavings.gc.ca

People with disabilities can choose what to do with the money when it comes out- there are no restrictions on how the money can be spent!

What is the social value of this project? Edit

How do I qualify?
To be eligible for the Registered Disability Savings Plan, you must:

1. Get your social insurance number
2. Become eligible for the Disability Tax Credit, and Canada Child Tax Benefit if you have a child under the age of 19
3. File your income tax returns
4. Choose the Holder (the person who makes the financial decisions)
5. You are younger than 60 years old

Where do I get it?
Financial Institutions

Canada’s major financial institutions are all offering the RDSP. Follow this link to see a list of financial institutions offering the plan www.disabilitysavings.gc.ca or call 1-800-O-Canada (1-800-622-6232).

What is the potential of this project to expand and develop? Edit

It is available at financial institutions across Canada. To find out how your province treats the RDSP, go to www.disabilitysavings.gc.ca

What was the triggering factor of this project? Edit

Beyond RDSP: Two Pillars for A Good Life

PLAN’s goal is to assist in ensuring a safe and secure future people with disabilities and, in the process, to provide their family members with peace of mind. PLAN’s vision is a good life for all people with disabilities and their families.

The future is one where you or your loved one with a disability is encouraged to participate in and contribute to community; have wishes and choices respected; enjoy financial security; live in a place of their own choice; and, are protected from abuse and exploitation. The two main and intertwined pillars are financial and social well-being.

Financial Well-being
You or your loved one with a disability may be financially dependent.

We encourage the use of assets to supplement services and programs provided by government to try and achieve a good life. There are a number of ways to build financial security:

 Accept the contributions of family and friends who want to help. Many people may want to help by providing cash gifts or inheritance to your son or daughter. Letting them know how to give that money (directly to an RDSP or trust) will ensure that it is a help rather than a conflict with government benefits regulations.
 Learn about and utilize the financial tools available- Registered Disability Savings Plan, discretionary trusts, RESPs, RRSP-rollover into an RDSP are all useful pieces in the planning puzzle.
 Do your will properly. Engage a lawyer who understands the government system of benefits and supported decision making avenues.
 Look at how life insurance fits into your future plan.
 Explore how homeownership contributes to both you and your relative’s financial and social security.

Social Well-being

Apart from financial security, a good social network is of equal importance when it comes to securing a good life. A social network includes all the people that you know. However, the most important individuals are the ones that you know well, trust, and turn to for advice and friendship- usually family and friends. Strong social networks reduce vulnerability, provide security and offer companionship.

One of the core services that PLAN provides is the development of social networks – building and maintaining networks of friends and family for life.

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