The RDSP plan was launched in 2008. So let us have a look and try to understand what RDSP is all about! If you are looking to enroll in the plan, feel free to contact Harpreet Puri in Brampton today!
RDSP plan encourages people with disabilities or someone who want to make their future financially more secure. It is encouraged federal government and provincial government program. When the money is taken out of RDSP, the part of it (contributed by the government and investment income) is taxable to the beneficiary. Some of the provinces have exempted RDSP income.
There are two programs under which the federal government contributes towards RDSP: the Canada Disability Savings Bond and the Canada Disability Savings Grant.
To open an RDSP the beneficiary should be eligible for the Disability Tax Credit. A beneficiary should have a disability or a medical condition, which hinders in their potential to carry one or more than one daily/basic activities of their lives. Disability tax credit is for anyone, irrespective of their age
A contributor who has a written authorization of the Holder can contribute towards RDSP. It implies that contributions can be made by family, friends, charities, businesses, foundations or others. Contributors who are contributing to RDSP do not get any tax deduction for their contribution, though government contributes extensively in addition to their contributions.
Mostly this fund can be withdrawn anytime, but there are few exceptions/restrictions. To know about it, kindly call us!
Disable people and people with medical conditions gets income from many sources: employment, long-term disability plans, legal settlements, trusts and so on. When it comes to receiving income from or saving in an RDSP, most people’s main concern lies with how their provincial income benefits and, then later, their federal senior's benefits will be affected.
To know more about RDSP plans, feel free to contact us at the given number. We, at Harpreet Puri, will make sure that your needs are met first, securing yours and your loved one’s financial future. You can also visit us in Brampton to get your quote today!