A Registered Disability Savings Plan (RDSP) is a tax-deferred, government-supported savings program designed to help individuals eligible for the Disability Tax Credit (DTC) build long-term financial security.
The individual that is the beneficiary must meet the following requirements:
RDSP contributions are non-tax deductible deposits and can be made by, or on behalf of the beneficiary up to the end of the year the beneficiary turns 59.
While all contributions made to the RDSP remain tax-free, government incentives and income earned in the RDSP are sheltered from tax until withdrawn.
Income payments from an RDSP will provide the beneficiary with an additional income source and will not impact most provincial disability benefits and other federal income-tested federal government programs such as GST, OAS, EI, and CCB.
Payments may affect eligibility for disability support and other disability pension plans. Consult with the provincial benefit provider for further information.
Take advantage of government incentives to grow your savings faster. The Canada Disability Savings Grant and the Canada Disability Savings Bond offer financial supports that can really add up over time.
At Kingston Community Credit Union, eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA). Eligible deposits (not in registered accounts) are insured up to $250,000 through FSRA.
A third party is an individual or entity, other than the account holder or those authorized to give instructions about the account, who directs what happens with the account. For example, if an account were opened in one individual’s name for deposits that are directed by someone else, the other person or entity would be a third party.
