RDSP

A Registered Disability Savings Plan (RDSP) becomes a PGAP at the beginning of a calendar year if the total of all federal grants and bonds paid into the plan exceeds the total of all private contributions during that same period.  Conversely, the RDSP becomes a non-PGAP if personal contributions exceed government grants and bonds.  PGAP … Read more

The Registered Disability Savings Plan (RDSP) is one of the most powerful wealth building tools available for Canadians with disabilities, offering up to $90,000 in lifetime federal grants and bonds.  Those eligible will often open an account at the same financial institution they do their daily banking with without realizing there may be better options … Read more

Navigating all 395 pages of the Registered Disability Savings Plan (RDSP) User Guide can be daunting because of the depth of information provided.  Two terms encountered frequently are the beneficiary and the account holder.  While these two roles are linked, they represent different responsibilities within the plan. The beneficiary Simply put, the beneficiary is the … Read more

The Canada Disability Savings Bond is specifically designed for people who cannot afford to contribute to a Registered Disability Savings Plan (RDSP), yet thousands of eligible Canadians are leaving money on the table because they haven’t opened an account.  For each year that a beneficiary is 49 years of age or under and has a … Read more

It’s a question that arises when asking about withdrawals from an Registered Disability Savings Plan (RDSP), “What if someone withdrawals just the interest gained on investments inside the RDSP? Or what if they only withdrawal the personal contributions leaving government grants and bonds intact inside the account, will they still have to pay the 3 … Read more

Choosing to begin Lifetime Disability Assistance Payments (LDAP) from a Registered Disability Savings Plan (RDSP) isn’t always about clearing the 10 year Assistance Holdback Amount (AHA) period, it’s also about maximizing tax deferred compounding versus the opportunity cost of inflation.  Those fortunate enough to have opened an RDSP earlier in life may have the choice … Read more

When the beneficiary of a Registered Disability Savings Plan (RDSP) passes away, the account must be closed and all remaining funds paid out by December 31 in the year after the year of death.  For example, if the beneficiary passes away in 2026, the account must be closed by December 31, 2027. The administration of … Read more

The Registered Disability Savings Plan (RDSP) is the most generous registered account available to Canadian with disabilities, and it is vital to empowering financial independence for the beneficiary.  In addition to opening the account, the account holder may be responsible for selecting investments inside the RDSP which could drastically alter the value of the account … Read more

We know that the Registered Disability Savings Plan (RDSP) has a $200,000 lifetime personal contribution limit.  However, let’s say that an RDSP holder tries to deposit $201,000 (for example) from their chequing account. How will the bank handle the transaction?  Would the bank deposit $200,000 into the account and return $1,000 to the chequing account? … Read more