Archives for RDSP

Who will be the holder of your son/daughter’s RDSP in the future?


None of us know what the future holds.  The wisdom of families who have gone before is the mantra that "good planning sews the seeds of peace of mind".

If you live in BC, you can easily plan ahead for future holders of RDSPs with a Representation Agreement.

Click here for the full post:


RDSP Resource Centre


The RDSP Resource Centre has a website and help desk to assist people in understanding, qualifying for, and setting up their RDSPs. You’ll find news, detailed information, tips and discussion.  

If your question isn’t answered on the website, call or email.

Telephone: 604-630-0333 or toll free 1-855-773-RDSP (7377)


What to do if government payments to your RDSP are delayed


The payment of Canada Disability Savings Bonds and Grants – the federal government contributions – are sometimes delayed in being deposited into people’s RDSPs.  Usually the problem is not serious, however, it also usually won’t be rectified if you don’t do anything about it.

I recently did a detailed post on why government payments are delayed and what you can do about it.  You can read it here:

Maximize deductions/Minimize the tax you pay!



The Disability Tax Credit (DTC) is a federal non-refundable tax
credit specifically for people with disabilities and serious medical
conditions. It can be claimed by the qualifying person, or a family
member, to reduce the amount of taxes he/she has to pay. This means you get to keep more of the money you earn.

You also need the DTC to open a Registered Disability Savings Plan
and qualify for up to $90,000 in federal government contributions. In
addition to the DTC, there are many other valuable benefits and tax
credits available to people with disabilities, mental or physical
impairments, or those whom have serious medical conditions. Many
Canadians are unaware of the tax benefits that they are entitled to or
are unable to navigate through complicated applications and filings.

People of any age may qualify for the DTC. People with a visual
impairments or who are on life-sustaining therapies qualify. Otherwise,
people must have a mental or physical condition (including a medical
condition) that affects one or more of the basic activities of daily
living listed here:
Speaking     Dressing     Elimination (bowel or bladder functions)
Hearing     Feeding     Walking
Performing the mental functions necessary for everyday life

In addition, the condition must have lasted or be expected to last for at least 12 months.

Examples of disabilities and conditions that may qualify for the DTC
are listed below. Please remember that people with many other
disabilities and conditions may also be eligible.
Bipolar Disorder     Diabetic     Fibromyalgia
Brain Damage/Injury     Arthritis     Learning Disability
Depression/Anxiety     Down Syndrome/Autism     Multiple Sclerosis

Benefits of the Disability Tax Credit

Some of the benefits of qualifying for the DTC include:

  • Reduce your tax payable – The DTC was established to reduce the amount of tax you must pay to compensate for some of the additional expenses people with disabilities face.
  • Transfer credits to eligible family members – If you do not pay taxes
    (e.g. you have no employment income), the DTC may be transferred to an eligible family member (e.g. a parent or a spouse) who does pay taxes.
  • Make Retroactive Claims – Once you have been approved for the DTC, retroactive claims may be submitted for the past ten years to offset previously paid taxes.
  • Make Future Claims – Once approved, you will be able to claim the DTC in the future to reduce your future taxes.
  • Claim Additional Credits/Enhancements – Once approved, you are eligible for additional credits
  • Become eligible to open an RDSP – You must be eligible for the DTC to be able to open a Registered  Disability Savings Plan. The RDSP is a powerful savings tool. The federal government will contribute as much as $90,000 to your RDSP.

Make your RDSP Contribution early this year !


The Registered Disability Savings Plan (RDSP) was introduced by the
government of Canada to help families and people with disabilities save
for their long-term financial security.

The benefits of saving in an RDSP:

Contributions to an RDSP are not tax-deductible, but they grow within
the plan on a tax-deferred basis. In addition, contributions may be
eligible for the Canada Disability Savings Grant (the grant) and the
plan may be eligible for the Canada Disability Savings Bond (the bond).
The grant provides matching contributions; no contributions are required
for lower income individuals/families to receive the bond. Together,
they could add up to $90,000 to your RDSP.

There is a lifetime contribution limit of $200,000 per beneficiary and no annual contribution limit.

Note that withdrawals trigger the repayment of any grant or bond received during the previous 10 years.

Making the most of your RDSP:

Here are some age-related strategies that may help you maximize the value of your plan, depending on your circumstances.

When the beneficiary is a young child:

  • Make contributions that attract the grant as early as possible, to
    maximize tax-deferred growth and to minimize the effect of the grant
    “clawback” — if a withdrawal is made, any grant payments received in the previous 10 years must be paid back.
  • Try to make an annual contribution large enough to attract the
    maximum matching grant contributions. The earlier you start, the better chance you will have of reaching the maximum grant amount of $70,000.
  • The tax-deferred status of contributions makes the RDSP an ideal
    way to invest in long-term solutions like a growth oriented mutual fund.

When the beneficiary is a young adult:

  • Try to contribute every year because the grant and bond cannot be
    received following the year the beneficiary turns age 49.  Even if there is no intention to contribute, the bond can be maximized simply by opening the plan early enough.
  • Upon reaching the age of majority, a beneficiary who is capable of
    managing his or her own finances can become the holder of his or her
    own plan. This isn’t compulsory, however. If you are the parent and have been the holder while the beneficiary was a minor, you can continue as holder.
  • At this stage, an investment solution that strikes the right balance
    between growth and safety may make sense depending on when withdrawals are planned.

When the beneficiary is a mature adult (40+):

  • Contributions to an RDSP do not qualify for grant contributions
    following the year the beneficiary turns 49. In addition, plans are not
    eligible for the bond after this time.  But beneficiaries can still
    benefit from tax-deferred growth by contributing up until the year they turn age 59.
  • Lifetime Disability Assistance Payments (LDAPs ***See explanation below) can begin at any age but must begin by the end of the year in which the
    beneficiary turns age 60. Consider waiting at least 10 years after the
    final grant and bond have been received into the plan before requesting LDAPs; otherwise, the grant and bond payments received in the previous 10 years will have to be returned to the government.
  • The portion of the LDAP consisting of grant, bond and investment
    income is taxable at the beneficiary’s marginal rate, which may
    influence the decision to begin payments. For example, if the
    beneficiary’s marginal tax rate is likely to decrease at retirement age,
    it may be advantageous to delay LDAPs until that time.
  • More conservative investment options, including those that generate
    regular tax-efficient income while providing some growth to offset
    inflation, should be considered as payments from the RDSP must begin.

Start a RDSP with Endowment 150


Go to the Vancouver Foundation’s website on Endowment 150 an initiative that helps people to get started on saving through a RDSP by offering a one-time $150 gifts to a Registered Disability Savings Plans (RDSP). Check it out…

Get your free copy of Safe and Secure!!!


Safe and Secure is PLAN’s first book, which contains everything a family needs to know about future planning for a relative with a disability.  Families have told us that it is an invaluable resource. 

We have recently re-written the book (updated and with RDSP info) and the BC Government has pre-paid for your copy.

You can pick it up at your local London Drugs! (check the pharmacy department). 


I’ve inherited $10,000 but I am going to lose my BC Disability Assistance


BC Disability Assistance has long permitted people who recevie sums of money, such as an inheritance, to set it up in a trust and continue to receive their income and other benefits.  The problem is that setting up a trust is complicated and generally we don’t encourage people to do it themselves without visiting a lawyer (which has a cost).

NOW under some circumstances, people can deposit the inheritance in a Registered Disability Savings Plan (RDSP) (at no cost).

The person must qualify for the federal disability tax credit and be 59 years old or younger.

The RDSP is an exempt asset in BC (and all other provinces) and can be used for any purpose in bc (and MOST other provinces) without impacting Disability Assistance.

 For more information, visit


RDSP and Representation Agreements


My 26 year old son has opened up an RDSP with BMO.

We were told that BMO’s Legal Dept. does not recognize

Representation Agreements. From  PLAN I understand that

this is not uncommon. We were able to set it up by going

into the branch for every step. We found the BMO branch 

at Brentwood Mall in Burnaby to be very helpful.

All about the RDSP


PLAN has created a new site –  It’s the go-to site for information about Canada’s new registered disability savings plan and the accompanying Canada Disability Savings Grant and Bond.