To be eligible for the Registered Disability Savings Plan, you must:
1) Make sure you or your relative qualify for the Disability Tax Credit;
2) Be a Canadian Resident and have a valid Social Insurance Number;
3) Be under 60 years of age;
4) If your child is under age 18, make sure you sign up for the Canada Child Tax Benefit;
5) File a tax return for two years prior (to receive the Grant and Bond)
After you have completed or verified these 5 Steps, you are now ready to set up an RDSP with a financial institution that offers the plan. To see a list of financial institutions offering the plan and a guide to choosing a plan visit WHERE DO I GET IT?
How do I apply for a Disability Tax Credit?
To be eligible for the Registered Disability Savings Plan you or your relative must qualify and receive the federal Disability Tax Credit which is administered by the Canadian Revenue Agency. You can apply for the Disability Tax Credit by completing Form T-2201, which must be filled out by the individual, parent or guardian, followed by a qualified practioner. After both sections of the form have been filled out, you must submit the completed form to the Canadian Revenue Agency for Assessment. Following this assessment, the Canadian Revenue Agency will determine whether you are elgible to receive the Disability Tax Credit or not.
To be eligible, you must meet one of the following conditions:
1. Blind
2. Receive Life Sustaining Therapy
3. Be markedly restricted in the basic activities of daily living (e.g., dressing, speaking, feeding, walking, mental functions necessary for everyday life, etc.)
4. Be significantly restricted in two or more activities of daily living (e.g., dressing, speaking, feeding, walking, mental functions necessary for everyday life, etc.) **Your disability must last 12 months, or be expected to last 12 months
Form T2201 spells out the requirements in greater detail. For a copy of the form click here: http://www.cra-arc.gc.ca/E/pbg/tf/t2201/
How do I apply for a Social Insurance Number?
To apply for a Social Insurance Number (S.I.N.) you must have an official primary document that proves your identity and status in Canada. This can include a Canadian Birth certificate, a Canadian Citizenship Certificate, Permanent Resident Card, Work/Student Permit, or proper supporting documents. For a full list click here: http://www.servicecanada.gc.ca/en/sin/apply/proof.shtml
You can apply for a Social Insurance Number at a local Service Canada Centre for locations click here: htt p://www1.servicecanada.gc.ca/en/gateways/where_you_live/menu.shtml or by mail.
To view // --> all the options available for applying visit Service Canada. http://www.servicecanada.gc.ca/en/sin/apply/how.shtml
How do I file an Income Tax Return?
To file an Income Tax Return you must fill out the General Income Tax and Benefit package that you can receive from the Canadian Revenue Agency. To receive the appropriate forms and understand how to properly complete your income tax return visit the Canadian Revenue Agency's website at: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/menu-eng.html
How do I apply for the Canada Child Tax Benefit?
If you are setting up an RDSP for your child you will need to apply for the Canada Child Tax Benefit (if you do not already receive it). The Canada Child Tax Benefit is a tax-free monthly payment made to eligible families to help them with the cost of raising children under age 18. To find out more about the Canada Child Tax Benefit you can visit the Service Canada website at: http://www.servicecanada.gc.ca/eng/goc/cctb.shtml To view the application form for the Canada Child Tax Benefit click here: http://www.cra-arc.gc.ca/E/pbg/tf/rc66/README.html
Article by Doug Lagasse
The Grey List: Facing the Challenges of Qualifying for Disability Tax Credits Sometimes applying for Credits and rebates can be a frustrating and time-consuming experience. In an effort to help you maximize your chances of receiving the Disability Tax Credit and becoming eligible for the RDSP, we have asked Doug Lagasse of Ken Lagasse Inc., Chartered Accountants to provide a guest article on the challenges of applying for the Disability Tax Credit and what you can do to increase your chances. Download
Fact Sheet
The Factsheet is a two-page capture of all the relevant information needed to get a general overview of the Registered Disability Savings Plan. The Factsheet includes; Overview of the RDSP, the Grant and Bond, Federal Implications, Provincial Implications, and Financial Institutions. Download
Bulletin
The Bulletin is a 16 page document which provides a more detailed overview of the RDSP. We brought together families and professionals to develop the most comprehensive information so far about the RDSP. The result: a combination of professional and lay advice; technical articles and personal stories. To receive the Bulletin join PLAN for free
Calculator
The calculator will help Canadian families project the estimated future value of an RDSP, and will help determine how it can enhance the quality of life for a family member with a disability. By answering a few simple questions, the calculator will determine the amount of Grant and Bond a person is eligible for, and the approximate value of future payments. Download
