Registered Disability Savings Plans (RDSPs)

Mackenzie Financial is part of one of Canada’s largest companies and is one of the few institutions that has launched a RDSP.  Administering this type of plan is relatively expensive, requires significant systems programming and since these plans are only a few years old, they are almost all small accounts. They have produced a helpful RDSP Guide that has essential information about RDSPs.

An RDSP may be suitable for Canadians who are under the age of 49, qualify for the Disability Tax Credit Certificate and are expected to continue to qualify for life and who wish to save and invest for income after the age of 59.  For 2011, there is a government grant of $1,500 for the first $500 contributed and $2,000 for the next $1,000 contributed if family income is below $83,088.  For higher incomes there is a grant of $1,000 for the first $1,000 contributed.

We have already helped some clients open RDSP’s and have considerable knowledge about financial planning for the disabled and their families, including various tax saving measures and estate planning using Henson Trusts in your will.  If you know someone with a permanently disabled family member, please ask them to contact us to learn if they should be taking advantage of the extremely generous RDSP grants.