RDSP Barrier #9: Re-applying to the disability tax credit once it expires
Rule: The Disability Tax Credit (DTC) eligibility is based on the disability lasting consistently for 1 year or more The DTC is a doorway to the RDSP – people must qualify for the DTC before the can open a...
RDSP Barrier #10: Income tests and asset based benefits
The Rule: the RDSP may count as income or asset in eligibility tests for programs, services &/or benefits. In most provinces across Canada the income earned from an RDSP will not affect eligibility to benefits. This means people can...
Introducing the “Top Ten RDSP Barriers”
As we approach the 3-year anniversary of the RDSP we’d like to reflect on the stories and the insights that you’ve shared with us regarding your RDSP experience. One way we’ll be doing this is by posting the top...
What if I need money from my RDSP?
The single most often asked question about the RDSP is, "What if I need money from my RDSP before ten years after the last federal government contribution?" This question is reflective of two issues. 1. A Design Flaw The...
Forced Savings Puts Inertia on Your Side
I came across this article in the Financial Post yesterday- and thought it interesting. In pre-approved withdrawals, people begin to forget about that money and adjust their budgeting to accommodate the $25 less (or whatever the amount is). For...
Dispelling the Myths #3: RDSP Withdrawals
There are several common misunderstandings about withdrawals from RDSPs. It is, however, a critical thing for a contributor to understand. After all, at some point the idea is to use the funds for the beneficiary. That people are confused...
Taxation of RDSP Payments to Aboriginals—by Joel Crocker
On August 4, 2010, PLAN submitted a ruling to CRA. Earlier that month, we had connected with BC Aboriginal Network on Disability Society and CLBC to talk about how the RDSP might be received by Aboriginal Canadians. There was...
RDSPs versus Trusts: Scenario 1 (Nicholas)
A trust, an RDSP or both? Scenario 1 - Nick in BC. Continue reading →
2011 Federal Budget: Improvements to the RDSP and more…
If Minister Jim Flaherty’s 2011 Budget receives royal assent and comes into force, what will people with disabilities and families see from it?
RDSPs versus Trusts
Should you open an RDSP or set up a trust? The short answer is that you can, and probably should, use both two vehicles. They have different purposes, rules and different interactions with provincial and federal benefits and supports....