What is a Registered Disability Savings Plan?
Do you have a disability and have you heard of the Registered Disability Savings Plan?
Many people haven’t! In my latest Street Smarts video, I’m happy to share another option for people with disabilities. It’s a great way to add to your retirement and ensure you have more money for your future.
Maybe your financial advisor has told you about it. Maybe you’ve heard about it from your bank. Maybe your friends have talked about it.
But how much do you really know about RDSPs? I’m here to help explain more about this important savings plan!
Registered Disability Savings Plans is a program provided by the Canadian government
The government wants to provide more options for people with disabilities to have a more financially secure future.
This money is given through grants and/or bonds after an initial investment. There are a variety of options for that initial investment. There is a certain amount you can contribute and the government has a schedule for matching.
How much money can I get from an RDSP?
You could receive hundreds or thousands of dollars from these government bonds and grants.
For example, one of my clients named Mike initially invested $500. Within three months, he was already given $9,700 in grants and bonds.
Another example in an eight year old girl. Her parents started an RDSP for her with an initial $200. She received $6,000 in grants and bonds!
Nancy is another great example. She started with $2,500 AND ended up with $12,000 in grands and bonds.
EVERYONE IS UNIQUE IN HOW THEY WOULD QUALIFY.
What determines how much you receive from an RDSP?
RDSP amounts are based on specific qualifications. Each individual can receive a different amount depending on things like income and LENGTH OF DISABILITY.
What you receive initially may change year-to-year, depending on your income.
Your grant will be matched by your initial contribution. Your bond is qualified by a low income tax return.
How long does my money have to stay in an RDSP?
Another important detail is how long your money must stay in the plan. The money has to stay IN THE PLAN for a minimum of 10 years from the last contribution.
How do I qualify for an RDSP?
In order to qualify for a Registered Disability Savings Plan, you need a disability tax credit for when you file your tax return. This will be your first step in starting the process for an RDSP.
What if you don’t have a disability tax credit? Not a problem. Click here to find out more about disability tax credits and how to get one.
Talk to a financial advisor to find out more details about RDSPs.
What’s the best age to start an RDSP?
Anytime! But if you’re under 50 years old and have a disability tax credit, having an RDSP is a great option to save for your retirement. Even if someone is under 18, getting the guardians to start an RDSP is a very smart financial decision.
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Let’s get in touch! We’d love to answer all your questions. Contact Taayla today to learn more about RDSP. Subscribe to our YouTube channel! We post new video content once a month, so don’t miss an episode and get my financial tips and tricks sent straight to your inbox.