Registered Disability Savings Plan (RDSP): Who Qualifies and What You Get
Learn how to access government grants and bonds through the RDSP to build long-term savings for people with disabilities.
The Registered Disability Savings Plan (RDSP) is a long-term savings program designed to help people with disabilities build financial security for the future.
Who it's for
To qualify for this plan, you must be a Canadian resident and be eligible for the Disability Tax Credit (DTC). This eligibility is the primary requirement to access the program's benefits.
What you get
The main benefit of this plan is the ability to receive government grants and bonds. These government contributions are added to your personal savings to help grow your funds over the long term.
What it costs you
There is no direct fee to participate in the scheme. However, to use it, you will need to go through the process of setting up a bank account with a financial institution to hold your savings and the government funds.
The catch to know
It is important to understand that the money you personally contribute to the plan is not tax-deductible. While the government provides grants to supplement your savings, your own contributions do not reduce your taxable income.
How to apply
- Confirm that you are eligible for the Disability Tax Credit.
- Contact a financial institution to set up your specialized bank account.
- Work with your bank to begin making contributions and receiving government grants and bonds.
For more details and to get started, visit the official portal: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-disability-savings-plan-rdsp.html