People with disabilities have extra things to consider when it comes to finances.
An RDSP helps people with disabilities and their families plan for their future financial security.
You can contribute up to $200,000 to an RDSP.
There are a few requirements in order to be eligible to open an RDSP. The beneficiary needs to:
Get your hands on this useful brochure packed with valuable information about the Registered Disability Savings Plan, in accordance with the latest legislation effective from April 2023. And don’t hesitate to reach out to a knowledgeable PenFinancial Advisor today to get answers to any questions you may have about an RDSP.
Download the RDSP brochure →As of 2020, the government contributions into an RDSP break down like this:
If your household income is below $31,711: Even with no contributions, the government will contribute $1,000 each year for 20 years through the Canada Disability Savings Bond. People living on an income between $31,711 and $48,535 can still receive a portion of the $1,000.
In addition, you can receive the same benefits from the $97,069 and under threshold below.
If your household income is less than $97,069: For the first $500 you contribute into an RDSP, the beneficiary will receive $3 for every $1 contributed. For the next $1,000, the beneficiary will receive $2 for every $1 contributed.
Therefore, the maximum grant for one year is $3,500, should you contribute at least $1,500.
The lifetime maximum grant you can receive is $70,000.
If your income is more than $97,069: For the first $1,000 you contribute into the RDSP, the beneficiary will receive $1 for every $1 you have contributed.
Therefore, the maximum grant for one year is $1,000, should you contribute at least $1,000.
The lifetime maximum grant you can receive is $70,000.
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