The Registered Disability Savings Plan (RDSP) is intended to help disabled Canadians save for their retirement. For those taking advantage of the plan, the Canadian government will provide yearly financial support in the form of matching grants up to $3,500 per year and bonds up to $1,000 per year.
Who can become a beneficiary of a Registered Disability Savings Plan?
Any individual can be designated as a beneficiary if he or she:
- is eligible for the Disability Tax Credit;
- has a valid social insurance number (SIN);
- is a resident in Canada and at the time the plan is entered into;
- is under the age of 60. This age limit is not applicable when a beneficiary’s RDSP is opened as a result of a transfer from the beneficiary’s prior RDSP.
Who can contribute to the Registered Disability Savings Plan?
Anyone can contribute to a RDSP with the written permission of the plan holder.
Who can set up a Registered Disability Savings Plan?
If the beneficiary has reached the age of majority and is contractually competent, only the beneficiary can open a RDSP and become a holder of the plan. If the beneficiary is a minor, another person can open a RDSP for the minor and become a holder if that person is:
- a legal parent of the beneficiary;
- a guardian, tutor, or curator of the beneficiary, or an individual who is legally authorized to act for the beneficiary; or
- a public department, agency, or institution that is legally authorized to act for the beneficiary.
What is HandyTax’s role in this process?
- Ensure that the client is approved for the Disability Tax Credit;
- Maximize your Disability Tax Credit and Child Disability Benefit claims, which you may use to invest in a RDSP;
- Provide recommendations as to where a RDSP can be opened in your town or city;
- Aid in regards to applying for grants and bonds and ensure the maximum amounts are received.
Where can I open a RDSP?
- Assiniboine Credit Union
- Bank of Montreal
- Bank of Nova Scotia
- Central 1 Credit Union
- Central 1 Trust Company
- Community Trust Company
- Global Growth Assets Inc.
- Investors Group Trust Co. Ltd.
- Fonds d’investissements FMOQ inc. (French only)
- Mackenzie Financial Corporation
- RBC Royal Bank
- TD Waterhouse Canada Inc.
- Natcan Trust Company