The RDSP and future financial security for children in care
One of the public policy questions that emerged shortly after the launch of the RDSP at the end of 2008, was: “Who should act as account holders of RDSPs of children in care once they become adults?” Children in...
New RDSP products available from HRSDC!
From the Federal Government’s RDSP Grant, Bond and Outreach Team: “It is a pleasure to announce another new feature to our website – videos about the Registered Disability Savings Plan (RDSP), the Canada Disability Savings Grant and the Canada Disability Savings...
U.S. citizens living in Canada|Canadian citizens living in U.S.
We have had several questions recently relating to citizenship and residency and the Registered Disability Savings Plan (“RDSP”). As you may have heard in the media recently, the U.S. Internal Revenue Service (“IRS”) is paying more attention to Americans...
RDSP #1 Barrier: The 10-Year Rule
From December 2008 to December 2010, Canadians opened 41,060 RDSP’s, which represents only 9% of the eligible population. So why have the existing 91% of Canadians not accessed the RDSP? Throughout the summer, we’ve been discussing the possible barriers...
RDSP #2: RDSP Government Contribution (Grants & Bonds) Age Limit
The age limit to receive a RDSP grant and/or bond was indentified by families as the second most challenging barrier to the RDSP. Individuals with an RDSP don’t qualify for the government grants or bonds if they are over 49...
RDSP Barrier #3: Emergency Withdrawals
Throughout our “Top Ten RDSP Barriers” series, we often compare the RDSP to similar savings vehicles such as RRSP’s or RESP’s. For the most part, this comparison serves us well and exposes the inequities between disability and non-disability related...
RDSP Barrier #4: Average Lifespan and the Lifetime Disability Assistance Payments (LDAP)
Lifetime Disability Assistance Payments (LDAP) are scheduled payments that can be made to the beneficiary from their RDSP. There are various types of RDSP payments; all with different kinds of restrictions that discourage early RDSP withdrawals. The LDAP is...
RDSP Barrier #5: Creditors
Wait a minute….what’s a creditor? A creditor is person or business that extends credit or loans. Creditors can be either “personal” or “real”. People who loan money to friends or family are personal creditors. Real creditors (i.e. a bank or finance company) have legal contracts...
RDSP Barrier #6: Inability To Appoint a New Beneficiary
What happens to the money in a RDSP if plans change? Unlike the Registered Retirement Savings Plan (RRSP) or the Registered Educational Savings Plan (RESP), an RDSP may only name one beneficiary and it can never be transferred to...
RDSP Barrier #7: Disability Tax Credit Eligibility
The Registered Disability Savings Plan (RDSP) was launched in December 2008 after a decade of community groups and government working together. The combination of individual/ family and government financial contributions into an RDSP helps people with disabilities to grow,...