Hopefully you don’t go to sleep at night wondering how to explain payments from RDSPs. We do!!!
It would be easy to take the attitude – “It’s complicated. I’ll learn it when I need to.” At PLAN, we don’t think that’s good enough. It’s an investment. It’s an insurance policy. It’s the future. We want to know that it will work so we can go to sleep at night with peace of mind – that it will work for our family members.
In planning for the future over many years, families tell us that peace of mind comes with knowledge and action.
Here’s a summary of our latest, greatest explanation of payments. (The full detailed document is attached at the bottom of the post)
Summary Table
| Payment Type | Federal Government Contributions exceed Private Contributions (at the beginning of the year) | Private Contributions exceed Federal Government Contributions (at the beginning of the year) |
| LDAP requests when beneficiary is under age 60 | – permitted- maximum of LDAPs combined with other payments must be limited by formula | – permitted- LDAPs limited by formula |
| LDAP requests when beneficiary is age 60 or over | – required- maximum of LDAPs combined with other payments must equal amount determined by the formula | – required- formula determines the maximum LDAP payment |
| Flexible DAP requests when beneficiary is under age 60 | – permitted- maximum of Flexible DAPs combined with other payments must be limited by formula | – permitted- no limit on amount |
| Flexible DAP requests when beneficiary is age 60 or over | – permitted- maximum of these payments combined with other payments must equal amount determined by the formula | – permitted- no limit on amount |
| Beneficiary-requested DAPs | – permitted between the ages of 27 and 59- maximum of these payments combined with other payments must be limited by formula | – not permitted |
| Terminal-iIllness DAPs | – permitted whenever a physician provides a certificate that the beneficiary will not live longer than 5 years- no limit on amount | – permitted whenever a physician provides a certificate that the beneficiary will not live longer than 5 years- no limit on amount |