Registered Disability Savings Plan Canada

“RDSP” stands for “Registered Disability Savings Plan.” In Canada, this is a matched savings plan designed to help people who have disabilities. If you are disabled and have a fund set up for yourself, then anyone else who wants to can add to it. This way the people who want to help you out have a way to do so. You can invest the money so that it will grow; the best part is that the government will match as much as $3 for every $1 that gets deposited, as long as your total family income is less than $87,123, through the Canada Disability Savings Grant. Also, RDSP is exempt from the vast majority of income assistance and provincial disability benefits, which means it won’t reduce the benefit payments you get elsewhere. Finally, you get to choose what to do with your money. If you make less than $25,356, the government places $1,000 into your RDSP annually for twenty years, through a program called the Canada Disability Savings Bond. (Registered disability savings plan Canada (rdsp)

So how do you qualify for an RDSP?

Follow these steps below.

1. Get a Social Insurance Number (SIN). As long as you are at least 12 years old, you can apply for your own. If you have a legal guardian or personal representative, that person can apply for you. Get out your birth certificate, permanent residence card or Certificate of Canadian Citizenship — in either case, it has to be the original. Then, get an application form from Service Canada and submit it. Your card should be mailed out within two weeks after they get your form. Your first card is free, but if you’re getting a replacement, that costs $10.

2. Find out if you are eligible for the DTC (Disability Tax Credit). There are two questions to answer, and you have to answer “Yes” to both of them. The first asks is you have a physical or mental disability of more than a year’s duration. If you just developed the disability, you can still qualify if your doctor expects the disability to last at least a year. The second question asks if you are blind, need extensive treatment or therapy, or if you face limitations in the activities which people must do on a regular basis. Any one of those three must be true for you to qualify. Then, fill out the T2201, or Part A of the DTC form. Take the form to the specialist who can attest to your disability. Explain your challenges and have the specialist fill out your form. After you send in the form, you will hear within two months in most cases. If you are turned down, you can file a formal objection or resubmit your form.

3. Now it’s time to file your income taxes. This helps the government know how much bond and grant money you qualify for under the terms of the RDSP.

4. Next, open an account at a financial institution, and set up at least a savings account, if you do not have bank accounts already. You’ll need this to receive deposits for your RDSP funds. Make sure you choose a bank that will allow direct deposits to go into your RDSP, as not all will. If you are competent, then you will probably want to be the Holder of your account. If you have a guardian, then that person will likely be the Holder. If the bank is worried about your ability to take care of your own financial matters, they may request that you bring a legal representative who will open and administer the RDSP for you.

Setting up an RDSP is a major step toward financial freedom if you have developed a disability. The fact that the Canadian government matches your savings with $3 for each $1 that you put away is extremely generous and will help you avoid the financial struggles that ensnare many people who are disabled.

Amansad Financial can connect you with institutions that will manage your RDSP in a way that is convenient for you to use when you need it. The institutions will also match you with financial planning professionals who will help you make the best investment decisions with your principal and interest, so that as you get older not only will you still receive that triple matching from the government, you’ll also enjoy the fruits of high returns because of the investment decisions that you have made with the principal you already have in the account.

Putting together a down payment does not have to be as difficult as it sounds. If you don’t have an RRSP account that is large enough to give you the full $25,000 or you still find yourself a bit short of what the bank wants, Amansad Financial can suggest some other ideas to help you structure the deal and get the house of your dreams. Give one of our mortgage specialists a call today, and we will take a look at your financial situation and make a recommendation that is tailored to your needs and the home that you want. Amansad Financial has relationships with lenders who will offer mortgages for mobile home purchases. If you think that this is the right step for you, give one of our specialists a call. We can refer you to the right lender for your needs and help you with alternative financing arrangements if necessary.

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