Let’s Talk About Registered Disability Savings Plans (RDSP)

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Let’s Talk About Registered Disability Savings Plans (RDSP)

Do you have any clients with a family member who would qualify for a Registered Disability Savings Plan (RDSP)? If so, the RDSP offers a great opportunity for Canadians with disabilities and their families to save for long-term financial needs, such as future medical and living costs.

To qualify for the RDSP, beneficiaries must be eligible for the Disability Tax Credit, be a Canadian resident with a valid Social Insurance Number, and be under the age of 60 at the time of enrolment.

Here are just a few of the features that the RDSP offers:

  • Tax-sheltered earnings: Like an RESP, money in the RDSP grows tax-free until withdrawal
  • Flexible withdrawals: Beneficiaries can receive money through either an annual payment or periodic lump sum withdrawals
  • Doesn’t affect eligibility for other programs: Beneficiaries can still qualify for Old Age Security, Guaranteed Income Supplement, and the Canada Pension Plan as well as existing provincial social assistance programs in most provinces and territories

Your clients can make contributing to their loved one’s RDSP easier by setting up automatic contributions during the year. Also, the account holder can authorize anyone to contribute to the RDSP, so family, friends, and the community can help pitch in to ensure someone close to them will have a little extra help down the road.

The Government of Canada offers assistance programs, such as the Canadian Disability Savings Bond Program, that will contribute as much as $1,000 per year to a maximum of $20,000 total if your clients fall within certain income ranges. These contributions are automatic and are made even if your client doesn’t make any contributions themselves.

Just think of the peace of mind you’ll be giving your clients knowing that their loved ones with disabilities will have added income to help them through their vintage years.

Be sure to suggest it to your clients if they have been touched by disability. It’ll make a positive difference in the life of someone close to them.

Carte Wealth Management Services Inc. in Mississauga, Toronto, and the GTA

If you have any questions RDSPs, or want more strategies that will help your clients further protect their wealth, contact us today!

Want to discover the ultimate independent advisor’s experience? Let’s connect. Carte Wealth Management Inc. (905) 891-7171.

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