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John Brown
Balvinder Bajwa

Tel: 604-514-1925
Fax: 604-514-1927

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1959, 152 Street
Suite 270
White Rock, BC
V4A 9E3
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Registered Disability Savings Plans

RDSP
The Registered Disability Savings Plan (RDSP) is a registered saving plan that is intended to help parents and others save for the long-term financial security of persons with severe or prolonged disabilities who are eligible for the Disability Tax Credit. Clients can now open an RDSP account through their BMO Nesbitt Burns advisor.

Benefits of a Registered Disability Savings Plan
  • Plan deposits can grow on a tax-deferred basis. While contributions to an RDSP are not tax deductible, income earned on plan deposits grow on a tax-sheltered basis until the funds are withdrawn. Amounts withdrawn from an RDSP are taxed as ordinary earned income.

  • RDSP deposits are eligible for the Canada Disability Grant (CDSG). Contributions to an RDSP may qualify for federal government grants of up to $3,500 per year (lifetime maximum of $70,000 available).

  • The RDSP program may qualify for additional payments under the Canada Disability Savings Bond. Lower-income families who wish to participate in an RDSP may be eligible for annual payments of up to $1,000 per year (lifetime maximum of $20,000 available).

  • Up to $200,000 may be contributed to an RDSP over the life of the plan per beneficiary. Deposits can be made in lump sum or periodic payments and will be accepted by the plan until the end of the year in which the beneficiary turns age 59, deceases, no longer is deemed a Canadian resident, or no longer qualifies for the CRA’s individual disability tax credit.

Registered Disability Savings Plan Eligibility
  • A legal parent, guardian, or an individual who is legally authorized to act on behalf of the beneficiary can be named as an Account Holder. A public department, agency or organization that is legally authorized to act on behalf of the beneficiary may also be named as an Account Holder. A beneficiary, who has reached age of majority, may also be named as an Account Holder.

  • There are no restrictions as to who can contribute to an RDSP. Anyone can make a contribution to a plan provided that the contributor has the written consent of the Account Holder.

  • An individual who is a Canadian resident and under 60 years of age can become an RDSP beneficiary. The individual must be eligible to receive the disability tax credit as described by the Canada Revenue Agency and be a Canadian resident.

  • Only one beneficiary per plan is allowed. Multiple beneficiaries are prohibited.

  • An RDSP can be held in joint ownership. Parents can be named Account Holders, where required.