WINNIPEG, Nov. 7, 2011
Program helps Canadians with disabilities and their families build long-term financial security
Investors Group today announced that it now offers Registered Disability Savings Plans (RDSPs) to eligible clients. RDSPs are long-term savings plans that help individuals, family and friends accumulate funds in an account for an individual (beneficiary) who is eligible for the federal Disability Tax Credit. RDSPs grow on a tax-deferred basis and may be eligible to receive the Canada Disability Savings Grant and the Canada Disability Savings Bond.
“We are pleased to support this very useful program for persons with disabilities and those who care about them,” said John Wiltshire, Senior Vice-President, Product and Financial Planning of Investors Group.
Canadian residents under age 60 who are qualified for the Disability Tax Credit may open an RDSP. Contributions are not tax deductible, but grow on a tax-deferred basis until money is withdrawn. The lifetime contribution is $200,000 per beneficiary, with no annual contribution limit.
To encourage savings, the Government provides a matching Canada Disability Savings Grant of up to $3,500 a year on contributions, depending on the net income of the beneficiary or beneficiary’s family. The Government also pays a Canada Disability Bond of up to $1,000 a year for 20 years into the RDSPs of low and modest income Canadian beneficiaries. To date, the Government has contributed more than $290 million to Canadian RDSPs.
Investors Group, founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of approximately 4,600 Consultants located throughout Canada. In addition to an exclusive family of mutual funds and other investment vehicles, Investors Group offers a wide range of insurance, securities, mortgage and other financial services. Investors Group is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada’s premier financial services companies with over $121 billion as of October 31, 2011, in total assets under management.
The Canada Disability Savings Grant and the Canada Disability Savings Bond are provided by the Government of Canada.
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