One of my favourite topics to write about is the Registered Disability Savings Plan (RDSP) offered to parents of mentally or physically disabled children to help start saving for their children’s future. The RDSP is important to me because I have a son diagnosed as being on the Autism Spectrum, but I also know many families that need help, and if anything I write here helps them, I will be thrilled.
This is the Real RDSP page you should check out as well. What follows here are some of the posts that I have written about this program and other articles from other authors on Tax Issues and different ways to save for your loved ones’ future.
As a note to those who know, no one knows how the system works. I have met the Zen Master for the RDSP. He works for the Government (at ESDC who runs the program), but he talks in the Ottawa area to help folks understand the RDSP program. He has said I could ask him questions, too!
Note: This page was getting a bit large and unruly, so I am breaking things down into subpages for now.
Your Journey To an RDSP
What needs to be done BEFORE you can apply for a Registered Disability Savings Plan? A significant aspect of this is the Disability Tax Credit (DTC). Make sure you click on this page to get started.
Now that you have succeeded in getting your Disability Tax Credit (DTC), you need to open an RDSP account with a bank or such, but how is that done? It is not as easy as you might think. This page outlines many of the issues that have arisen for my family working with an RDSP account.
Thanks to my RDSP and DTC work, I learned a great deal about the tax implications of having a disabled child.
Being the proud father of a child on the Autism Spectrum, I also ended up writing a great deal about Autism specific things.
RDSP Frequently Asked Questions
Matching grants are paid into the RDSP on contributions made up to, and including December 31 of the year, the beneficiary turns 49 years of age. (see this link for details).
No, they are not. They are after-tax funds. Growth, Bonds and Grants will be taxed on withdrawal from RDSP.
Yes, any time you wish. However, severe penalties must be paid if the withdrawal is before the beneficiary turns 60 unless this is an SDSP.
An RDSP is a trust arrangement between a holder and a trust company in Canada. (see here for more details)