Registered Disability Savings Plans (RDSP)

Savings

In 2008 The Government of Canada came out with Disability Savings Plans. These plans provide grants, or free money, to save and use as an income when the account holder turns 60 years of age.

If you are receiving the Disability Tax Credit you can open an account. When you put some money into it you can watch the government multiply it. You do have to take it as an income at age 60 but it doesn’t disrupt other programs that are income sensitive for the disabled.

The federal budget just announced that they will allow you to catch up on previous years, if the budget passes this year (2010).

Currently there are few choices available since only a handful of financial institutions have jumped on board with their accounts for RDSP’s. Eventually there will be more choices out there but it would be best to open an account and get started on the savings. You can always change institutions later to maximize growth.

If you have any questions or comments about this article or suggestions for future articles please email.

Jonathan Taylor
Chartered Financial Planner

6851 Morrison Street
Niagara Falls, Ontario  L2E 2G5
905-374-9550 or 1-877-325-7677