RDSP Barrier #3: Emergency Withdrawals

Throughout our “Top Ten RDSP Barriers” series, we often compare the RDSP to similar savings vehicles such as RRSP’s or RESP’s.  For the most part, this comparison serves us well and exposes the inequities between disability and non-disability related...

RDSP Barrier #4: Average Lifespan and the Lifetime Disability Assistance Payments (LDAP)

Lifetime Disability Assistance Payments (LDAP) are scheduled payments that can be made to the beneficiary from their RDSP.  There are various types of RDSP payments; all with different kinds of restrictions that discourage early RDSP withdrawals. The LDAP is...

RDSP Barrier #5: Creditors

Wait a minute….what’s a creditor? A creditor is person or business that extends credit or loans. Creditors can be either “personal” or “real”.  People who loan money to friends or family are personal creditors. Real creditors (i.e. a bank or finance company) have legal contracts...

RDSP Barrier #6: Inability To Appoint a New Beneficiary

What happens to the money in a RDSP if plans change? Unlike the Registered Retirement Savings Plan (RRSP) or the Registered Educational Savings Plan (RESP), an RDSP may only name one beneficiary and it can never be transferred to...

RDSP Barrier #7: Disability Tax Credit Eligibility

The Registered Disability Savings Plan (RDSP) was launched in December 2008 after a decade of community groups and government working together. The combination of individual/ family and government financial contributions into an RDSP helps people with disabilities to grow,...

RDSP Barrier #8: Contractual Competency – Should someone lose their decision-making rights, just so they can open an RDSP?

The Registered Disability Savings Plan (RDSP) was launched in December 2008 after a decade of community groups and government working together. The combination of individual/ family and government financial contributions helps people with disabilities to grow, manage and control...

RDSP Barrier #9: Re-applying to the disability tax credit once it expires

Rule: The Disability Tax Credit (DTC) eligibility is based on the disability lasting consistently for 1 year or more The DTC is a doorway to the RDSP – people must qualify for the DTC before the can open a...

RDSP Barrier #10: Income tests and asset based benefits

The Rule: the RDSP may count as income or asset in eligibility tests for programs, services &/or benefits. In most provinces across Canada the income earned from an RDSP will not affect eligibility to benefits.  This means people can...

Introducing the “Top Ten RDSP Barriers”

As we approach the 3-year anniversary of the RDSP we’d like to reflect on the stories and the insights that you’ve shared with us regarding your RDSP experience.  One way we’ll be doing this is by posting the top...