By R.A. (Bob) Challis, CFP, RHU, TEP,  The Nakamun Group, Winnipeg

Since the Registered Disability Savings Plan (RDSP) article in the last issue of Nakamun Advisor, Statistics Canada released disturbing information that prompts this update. In 2006, more than 4,200,000 Canadians were considered disabled and of these people, nearly 2,000,000 were eligible to establish an RDSP when it was introduced in 2008. A more recent survey indicates less than 50,000 
plans have been set up so far. This same survey revealed that less than half the respondents had even heard about RDSPs.

The RDSP is a generous social program intended to enhance the future financial security of persons who qualify for the Federal Disability Tax credit. The RDSP Federal Grants of up to $70,000 are in addition to most other income assistance benefits. Relaxed regulations and amendments facilitate tax-free transfers from certain other registered savings plans to an RDSP of a financially dependent disabled child or grandchild.