Canadian Capitalist Logo Dark
No Result
View All Result
Saturday, September 30, 2023
  • Login
  • Register
  • Home
  • Economy
  • Investing
  • Markets
  • Real Estate
  • Retirement
  • Tax Savings
  • Trivia
  • Resources
Subscribe
Canadian Capitalist Logo Light
  • Home
  • Economy
  • Investing
  • Markets
  • Real Estate
  • Retirement
  • Tax Savings
  • Trivia
  • Resources
No Result
View All Result
Canadian Capitalist Logo Mobile
No Result
View All Result
Home Tax Savings

Registered Disability Savings Plan

by Ram Balakrishnan
January 2, 2008
Reading Time: 1 min read
128 5
0
investing long term
152
SHARES
1.9k
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Parents of disabled children carry the added burden of saving for their child’s future. A friend recently mentioned her fears for her disabled daughter and I vaguely recalled reading about helping parents of disabled children in the Budget 2007 document. In its last budget, the Federal Government unveiled a plan to create the Registered Disability Savings Plan (RDSP) this year. Modelled on the RESP, contributions to the RDSP are not tax deductible but attract matching grants in the form of a Canada Disability Savings Grant (CDSG). The growth of investments within the RDSP is not taxed but when withdrawn, the grants and investment gains within the plan are taxed in the hands of the beneficiary.

The CDSG matches the RDSP contribution at 100%, 200% or 300% depending on the family’s net income (i.e. gross income less RRSP contributions, child-care expenses etc.) and the amount contributed for a maximum of $3,500 per year. For example, a family with a net household income of about $75,000 can contribute $1,500 to their child’s RDSP and get the maximum CDSG of $3,500. Families with net income above this threshold can get a matching of 100% when contributing up to $1,000.

Low-income families can establish a RDSP and receive a Canada Disability Savings Bond (CDSB) of $500 or $1,000 per year, even if no contributions are made. There are lifetime limits to how much can be contributed to the RDSP and how much can be received from the CDSG and CDSB.

You can learn more about this program in last year’s Budget document. The CRA website mentions that the plan would come into effect “as soon as possible in 2008”.

Related posts:

  1. Comments on RRSP Tip # 1
  2. Ideas for your Tax-Free Savings Account (TFSA)
  3. Seven Reasons why Retroactive TFSA Room isn’t such a Good Idea
  4. This and That: Taxwiki, Credit card rewards and more…
Share61Tweet38Share11

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
Previous Post

This and That

Next Post

Quick Review: UFile 2007

Ram Balakrishnan

Ram Balakrishnan

Related Posts

Investing

Questrade vs Wealthsimple 2023 Update: Breaking Down the Differences for Canadian Investor

January 11, 2023
2.2k
aerial photography of rural
Real Estate

First-Time Homebuyers: Is the First Home Savings Account (FHSA) Right for You?

January 9, 2023
2.2k
Maximizing Your Education Savings: The Advantages and Disadvantages of Group RESP in 2023
Investing

Maximizing Your Education Savings in 2023: The Advantages and Disadvantages of Group RESPs

January 9, 2023
2.1k
Receiving cash gifts from overseas family in Canada.
Tax Savings

Tax Implications of Receiving a Cash Gift in Canada

January 8, 2023
3k
Maximizing Your Retirement Finances: Should You Sell Your Home?
Retirement

Is Selling Your Home: A Smart Decision for Retirement?

January 7, 2023
2k
Your TFSA investing strategies will need a rethink in 2023.
Tax Savings

Why you should rethink your TFSA investment strategy in the 2023?

January 6, 2023
2.1k
Next Post
what is corporate dividend tax

Quick Review: UFile 2007

Please login to join discussion
Canadian Capitalist

© 2022 Canadian Capitalist

Navigate Site

  • Home
  • Disclaimer
  • Privacy Policy
  • Advertisement
  • Contact Us

Follow Us

No Result
View All Result
  • Home
  • Economy
  • Investing
  • Markets
  • Real Estate
  • Retirement
  • Tax Savings
  • Trivia
  • Resources

© 2022 Canadian Capitalist

Welcome Back!

Sign In with Facebook
Sign In with Google
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Google
Sign Up with Linked In
OR

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
two man and woman standing on doorway
The man who does not read has no advantage over the man who cannot read - Mark Twain