RDSP Account

A registered disability savings plan (RDSP) is a savings plan that is intended to help parents and others save for the long-term financial security of a person who is eligible for the Disability Tax Credit.

Unlike RRSPs, contributions to a RDSP are not tax-deductible, but any growth realized within the plan is tax-deferred. Up to $200,000 can be invested within the plan with no annual contribution limits and can be made until the end of the year in which the beneficiary turns 59 years of age. Contributions that are withdrawn are not to be included as income for the beneficiary when paid out of a RDSP. However, the Canada disability savings grant, Canada disability savings bond and investment income earned in the plan will be included in the beneficiary's income for tax purposes when paid out of the RDSP.

Many of you will remember that to get the 2008 Grant deposited into your RDSP you had to make sure to contribute by March 2nd, 2009.  Notice - This was unique for 2008 Grants.  For 2009 Grants, you will be required to contribute by December 31st, 2009.  If you do not contribute before this time, any contributions you contribute in 2010 will be for 2010 Grants and will not be applicable to 2009.

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Click here for information on how to open a RDSP account or transfer your existing RDSP account to GP Wealth Management.