REGISTERED DISABILITY SAVINGS PLAN | RDSP
A registered disability savings plan (RDSP) is a savings plan designed to provide for the long-term financial security for a person with a disability.
Savings are on a tax-deferred basis along with Canada Disability Savings Grant (CDSG) and Canada Disability Savings Bond (CDSB) allowing the savings, grants and bonds to grow in a tax free environment making this a powerful investment tool.
Contributions to an RDSP are not tax deductible and can be made until the the end of the beneficiary turns 59.
Contributions that are withdrawn are not included in income for the beneficiary when they are paid out of an RDSP. However, the Canada disability savings grant, the Canada disability savings bond, and investment income earned in the plan are included in the beneficiary’s income for tax purposes when they are paid out of the RDSP.
For additional information regarding a RDSP, contact your Advisor or our office in order for us to connect you with an Advisor.