So I am blatantly cribbing this from Kerry K at Squawkfox, but because she thought of it talking to me, I’ll take partial credit for it. Here are 5 steps to an RDSP, they may seem hard, but you can do it.
How to Open an RDSP
- Get your child a Social Insurance number. This is the first piece of the puzzle, but it is vital. Your child will also need it for an RESP too.
- BuildÂ your team. This was an excellent turn of phrase, because you are going to need it to get an RDSP. A Doctor, an accountant, a nurse practitioner, an Occupational Therapist and others can be valuable members of this team.
- With your Doctor or Medical professional fill in the CRA forms to start the process to get a Disability Tax Certificate. The DTC is another key part of the puzzle, without this, you cannot open an RDSP. Yes it is not easy, but you need to do it yourself, to ensure you get all the money you are due.
- Please do not use outside firms to get this. Do it yourself and keep all the money due to you (in terms for your Tax Credits).
- Go to a Bank and open an RDSP account. Sounds simple, doesn’t it? It isn’t that easy, due to the banks disinterest in the program. As I have said, the only full investment vehicle I can find is TD Direct Investment.
- Put money into the account! If you have low income, you will still get the Disability Bond money which adds up. Depending on your income, the government will match moneys you put into the plan.
While the whole how to open an RDSP process seems daunting, the RDSP is still an important financial tool to help out the disabled. There is help out there, but, be careful who you get help from.
Kerry’s version is much more eloquent, I figure I should include it, given I am cribbing from it.