– December 3, 2007
On March 19th, 2007 Finance Minister James Flaherty made history when Canada became the first country to create a Registered Disability Savings Plan.
The RDSP, which will become available in 2008, will benefit nearly three quarters of a million Canadians with disabilities. Over time, people’s RDSPs will provide billions of dollars to supplement income, enable home ownership, purchase supports, services and products and, ultimately, enhance quality of life.
In addition, the Canada Disability Savings Grant and Bond will provide a federal contribution to assist families in saving for the future.
▪ Registered Disability Savings Plan
– $200,000 lifetime contribution limit
– Contributions permitted by the individual, any family members or friends
– No annual limits on contributions
– Contributions grow on a tax deferred basis.
▪ The Disability Savings Grant will match contributions for 20 years:
– When annual family income is less than $74,357 – three dollars for each dollar contributed on the first $500 and two dollars for each dollar contributed on the next $1,000 contributed
– When annual family income is more than $74,357 – one dollar for each dollar contributed on the first $1,000.
▪ Withdrawals within 10 years of the last Grant or Bond payment may trigger penalties.
▪ For beneficiaries or families that have incomes of $20,833 or less, the Disability Savings Bond will provide $1,000 per year for 20 years without any contribution.
▪ People who qualify for the Disability Tax Credit will be eligible to open a RDSP and receive the Grant and Bond.
▪ Contributions can be made until a person’s 60th birthday year.
▪ Grant and Bond are available until a person’s 50th birthday year.
Actions to Stay Informed and Get Involved!
▪ Make sure you or your relative are qualified for the Disability Tax Credit
▪ Sign up for our public policy ezine, ActionPLAN or a telelearning seminar (details at www.plan.ca)
▪ Visit our new RDSP Blog at www.rdsp.wordpress.com
▪ Register for a free RDSP Tele-learning Workshop
▪ Write Minister Flaherty to thank him for his work on the RDSP.
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