RDSP

RDSP

A registered disability savings plan (RDSP) is a savings plan that is intended to help parents and others save for the long term financial security of a person who is eligible for the disability tax credit (DTC).

Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59. Contributions that are withdrawn are not included as income to the beneficiary when they are paid out of an RDSP. However, the Canada disability savings grant (grant), the Canada disability savings bond, investment income earned in the plan, and the proceeds from rollovers are included in the beneficiary’s income for tax purposes when they are paid out of the RDSP.

Early withdrawals from the RDSP will be penalized by the need to repay $3.00 for each $1.00 withdrawn to the total of the federal grants and bonds received.

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Contact us at Innovative Wealth Management Ltd.

Philip and the team at Innovative Wealth helped us to claim credits we did not know we could access on behalf of dependants. Their efforts made all the difference to our parents living a more comfortable retirement

Donna P.
, BC

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