The Registered Disability Savings Plan, or RDSP, is currently the most powerful tool available – for families with disabilities – securing financial stability for the future. It is a unique savings plan that offers a wide range of investment options from funds and savings deposits to GIC (Non-Redeemable, Canadian Market-Linked, Global Market-Linked) and can be received along side any provincial disability benefits.
The RDSP is comprised of two different forms of government assistance: the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB).
The CDSG is a federal government grant that provides matching contributions of 100%, 200% or 300% up to $3,500 annually, based on a family’s net income, until the end of the year the beneficiary turns 49 ($70,000 lifetime limit).
The CDSB was created to assist families who may not have the resources to make a contribution. It is paid on an annual basis into the RDSPs of low-income families (maximum payment is $1,000, up to $20,000 lifetime) by the federal government, until the end of the year the beneficiary turns 49. No contributions are required to be eligible for the CDSB, however a tax-return must be filed to be eligible.
Since its inception in December of 2008, the RDSP has helped thousands of Canadian families across the country. By offering a tax-deferred environment for contributions to grow and matching federal contributions annually (up to 300%), the Registered Disability Savings Plan is giving new financial security to the families in need.
For more information visit www.rdsp.com