RDSP

Key features of RDSPs

A Registered Disability Savings Plan (RDSP) is a means of supporting those who are disabled and in receipt of Disability Tax Credit to save for the future.  Here are some important things to know about these savings plans:

  • The person who is registered as disabled and who will benefit from the savings in the future is known as the beneficiary.
  • The person who opens and manages the plan on an ongoing basis is known as the plan holder. The beneficiary and plan holder can be the same person or different people.
  • Payments can be made into the RDSP until the beneficiary is 59 years of age.
  • Holding an RDSP does not mean that a beneficiary is no longer eligible to receive disability benefits.
  • There is a lifetime contribution ceiling of $200,000 into the plan but there isn’t an annual cap on the value of contributions.
  • While there is no tax due on the investment earnings as long as they remain in the plan and are not withdrawn, the contributions are not tax deductible.
  • There are a couple of federal schemes i.e.: the Canada Disability Savings Grant and the Canada Disability Savings Bond, which the beneficiary may be eligible to receive government contributions into the RDSP from.
  • Regular payments must be taken from the plan by the time the beneficiary reaches the age of 60.
  • The savings held in the plan can be invested in a variety of different ways, depending on where the plan is opened.
Learn More

Latest News

Empowering Your Family’s Financial Future: A Comprehensive Guide to Budgeting

Secure your family's financial future with effective budgeting. Learn how to gain financial clarity, achieve your goals, and prepare for emergencies in our comprehensive guide.

How To Use Insurance To Provide Your Family With Financial Protection

The best way to provide your family with financial protection is with solid insurance planning. These three types of insurance will ensure your family has the financial resources they need if you die, are injured, or become ill: - Life insurance. - Critical illness insurance. - Disability insurance.

The Health Spending Account for Business Owners and Incorporated Professionals

Discover a game-changing solution to manage medical expenses efficiently - the Health Spending Account. As a business owner, reduce tax burdens and provide tax-free benefits to yourself and employees. No monthly premiums, cost-effective, and hassle-free reimbursement process. Unlock the full potential of your healthcare budget now.

Stay Ahead in 2024: A Comprehensive Checklist for Federal Tax Updates

Explore the upcoming 2024 Canadian tax changes affecting investors, business owners, and high-net-worth individuals. From capital gains adjustments to new incentives, stay informed with our comprehensive checklist.

2024 Federal Budget Highlights

On April 16, 2024, Canada's Deputy Prime Minister and Finance Minister, Chrystia Freeland, presented the federal budget. While there are no changes to federal personal or corporate tax rates, the budget introduces: • An increase in the portion of capital gains subject to tax, rising from 50% to 66.67%, starting June 25, 2024. However, individual gains up to $250,000 annually will retain the 50% rate. • The lifetime exemption limit for capital gains has been raised to $1.25 million. Additionally, a new one-third inclusion rate is set for up to $2 million in capital gains for entrepreneurs. • The budget confirms the alternative minimum tax changes planned for January 1, 2024 but lessens their impact on charitable contributions. • This year's budget emphasizes making housing more affordable. It provides incentives for building rental properties specifically designed for long-term tenants. • Introduces new support measures to aid people buying their first homes. • Costs for specific patents and tech equipment and software can now be written off immediately. • Canada carbon rebate for small business

Tax tips to know before filing your 2023 income tax

Unlock the secrets to maximizing your 2023 tax returns with our essential guide. From the new Advanced Canada Workers Benefit to crucial deductions for families, ensure you're not leaving money on the table this tax season.

The Benefits of Working With An Employee Benefits Specialist

We'll explain how an employee benefits specialist differs from a generalist and why working with an employee benefits specialist is so important.

How To Use Insurance To Provide Your Family With Financial Protection

The best way to provide your family with financial protection is with solid insurance planning. These three types of insurance will ensure your family has the financial resources they need if you die, are injured, or become ill: - Life insurance. - Critical illness insurance. - Disability insurance.

Why A Buy-Sell Agreement Is Vital For Your Business

A buy-sell agreement is a legally binding document that sets out what must happen to a business if one or more of the owners is no longer involved. It is crucial for businesses as it protects both shareholders and the business itself in the event of a partner's departure. A buy-sell agreement provides many benefits, including maintaining business continuity, minimizing disputes between remaining co-owners and the family of the departing owner, decreasing stress and uncertainty for all business owners, and protecting business assets and liquidity with a solid financial and tax plan.