Fisgard is the only private issuer of the REGISTERED DISABILITY SAVINGS PLAN (RDSP) in Canada, and its income investment is the perfect fit for the RDSP.
If you have a disability or a limiting medical condition you should definitely check out the Registered Disability Savings Plan (RDSP), a federal government program to help people with disabilities save. The federal government will pay up to $20,000 lifetime to a person’s RDSP without any personal contributions and up to $70,000 in matching contributions. Tax on investment earnings is deferred until funds are used. Neither disability benefits from the provincial governments nor federal seniors’ benefits are reduced when people use the RDSP. It’s simply the best way for people with disabilities to save for their future.
If you are a parent the RDSP is the best way to save for your child’s future and to achieve peace of mind knowing that your son or daughter has financial security.
The RDSP Resource Centre provides information and makes qualifying easier for people. Headed by Jack Styan, Canada’s lead advocate of the RDSP, the RDSP Resource Centre is the site for RDSP information and application processing. The Centre makes the process simple and understandable. The RDSP Resource Centre’s website, help desk and qualifying services make it easy for you to determine if the RDSP should be part of your plan, and how to qualify for the Disability Tax Credit (DTC). You will be pleasantly surprised at the outcome of your call to the Resource Centre. Many applicants end up with a tax refund that they can contribute to their RDSP; money they didn’t even know was available to them!
EXAMPLES OF THE RDSP AT WORK
Angela, 28, is an entrepreneur who makes luxury bath products. She qualifies for the Disability Tax Credit and has a yearly adjusted net family income of less than $24,183 which is the cut-off amount to receive the full $1,000 Canada Disability Savings Bond per year. Apart from new carry-forward provisions, Angela qualifies for $1,000 per year to a total of $20,000 without her or her family making any contributions. Projecting average investment earnings of 5% per year, Angela will have approximately $55,000 when she is 58. Not bad considering neither she nor her family have had to contribute a cent.
Victor’s family opened his RDSP when he was 8 and they plan to contribute $1,500 per year for 20 years. Their adjusted net family income is below $83,088 and they expect that Victor’s will be below $24,183 once he turns 19. Projecting average investment earnings of 5% per year, Victor’s RDSP will be worth approximately $316,000 when he is 38. Here’s how it works:
|Canada Disability Savings Grant||$||70,000|
|Canada Disability Savings Bond||$||20,000|
|Total RDSP at age 38||$||316,000|
ELIGIBILITY FOR THE RDSP
To open a Registered Disability Savings Plan, the beneficiary must:
- qualify for the Disability Tax Credit, be under the age of 60 (the RDSP must be opened before December 31st of the beneficiary’s 59th year),
- be a Canadian resident, and
- have a Social Insurance Number.
FEDERAL GOVERNMENT CONTRIBUTIONS
The federal government provides generous incentives for people to save through two programs: the Canada Disability Savings Bond and the Canada Disability Savings Grant. The Bond Program pays up to $1,000 per year to a lifetime maximum of $20,000 to the RDSPs of people with lower incomes, even if they are unable to make contributions themselves. The Grant Program matches personal contributions by as much as 300% to a yearly maximum of $3,500 and a lifetime maximum of $70,000. The government matches the contributions of any person, organization or company. The amount of Grant and Bond depend on the beneficiary’s income or the family’s income if the beneficiary is a child. The Grant and Bond are available through age 49. People can receive both the Grant and Bond. Visit the Resource Centre’s website (www.rdspresource.ca) for more details.
WHO QUALIFIES FOR THE DISABILITY TAX CREDIT (DTC)?
The Disability Tax Credit (DTC) is not granted on the basis of having a specific disability. A person might have a physical disability, visual or hearing impairment, developmental disability, mental illness, learning disability, acquired brain injury or medical condition. Eligibility depends on how the condition impacts his or her life on a daily basis. This may include mental as well as physical restrictions. Your best advice is to call the RDSP Resource Centre for a free eligibility assessment.
With the specialized RDSP knowledge and experience of Ability Tax Group, the Centre can walk you through the application process, including filing an appeal, if necessary. The Centre makes it easy for you. In addition to handling your application the Centre will review and re-file your taxes and where appropriate, transfer the available credit to an eligible family member to enable you to claim retroactive credits that may be owed to you. These credits may be substantial. Don’t miss out!
Eligibility for the RDSP is not the only benefit of qualifying for the Disability Tax Credit. Other benefits include:
- tax savings from $1,443 to $2,344 (2010 tax year) plus an additional amount for children under 18. The tax credit and any transfers may be claimed retroactively for the previous 10 years! This often means lump sum refunds and future tax savings for the person or an eligible family member;
- access to, or enhancement of, other tax credits, deductions or social benefits (e.g. Working Income Tax Benefit – Disability Supplement); and
- estate planning advantages such as superior tax status for trusts and tax free rollover of RRSPs and RRIFs to RDSPs.
CARRY-FORWARD PROVISIONS FOR RDSP GRANTS AND BONDS
Effective 2011, a person’s Canada Disability Savings Grant and Bond entitlements back to 2008 will be carried forward and paid where applicable. With the carry-forward a person who opens an RDSP in 2011, and who has had low incomes since 2008, will be eligible for up to $4,000 in Bond money.
RDSP RESOURCE CENTRE
The RDSP Resource Centre has professional resources to help you:
- WEBSITE – Visit www.rdspresource.ca for information about the RDSP and to post questions and comments.
- HELP DESK – provides answers to your RDSP or Disability Tax Credit questions by phone, email and live chat.
- QUALIFYING SERVICES – provides help in applying for the Disability Tax Credit.
FISGARD’S EASY ACCESS RDSP
Register for the Program
Call Fisgard at 1-866-382-9255 and ask to register for the Easy Access RDSP Program. If you have no taxable income, the RDSP Resource Centre will help you free of charge.
Get Informed about the RDSP
Visit www.rdspresource.ca or call the RDSP Resource Centre help desk at 1-855-773-RDSP (7377) to find out more about the RDSP.
Get Your Disability Tax Credit
Contact the RDSP Resource Centre at 1-855-773-RDSP (7377) for a free eligibility assessment and to get your Disability Tax Credit application underway. The Centre will also ensure your taxes are filed properly.
Start Saving NOW!
Call Fisgard at 1-866-382-9255 to open your RDSP, apply for the Canada Disability Savings Grant and Bond and make your first contribution!
CALL NOW. YOU’LL BE GLAD YOU DID!
JACK STYAN – RDSP RESOURCE CENTRE FOUNDER
Jack Styan is the purveyor of the Registered Disability Savings Plan. After working with disabled people and their families for twenty years Jack realized success in 2007 when federal Finance Minister Flaherty implemented a plan to assist disabled people and their families to secure their financial futures. On December 23, 2008 Canadians started opening RDSPs and saving for their futures.
Two years later 43,000 people have opened RDSPs and saved over 250 million dollars. Jack estimates that nearly 500,000 people qualify for the RDSP, meaning that less than 10% of Canadians who qualify for the RDSP have taken advantage of the program.
In conjunction with Ability Tax Group (‘Ability’), Canada’s foremost professional service for people with disabilities, the RDSP Resource Centre was launched in November 2010. Ability is Canada’s leading disability tax specialist. The RDSP Resource Centre raises awareness of the RDSP financial resources that are available and provides professional friendly assistance to those who need RDSP assistance. The RDSP Resource Centre makes the RDSP process simple and user friendly. It is the best in Canada.
Jack Styan – RDSP Resource Centre Founder
“The RDSP was designed to help people in many different situations. For example, if you want to assist a relative or friend, your contributions will be matched by the federal government. If you know people with no means to contribute themselves, they can benefit from the Bond Program. Please tell family and friends about the RDSP. One of our biggest challenges is getting the word out!”