What do you need to qualify for an RDSP?
In my research for this blog, I have found that most families are very aware of Registered Education Savings Plans but for those with children with special needs, Registered Disability Saving Plans can sometimes be a mystery. I know many families who have gone to their banks and either been told to call another number (it is a specialty) or that the advisor was not familiar or aware of the RDSP and more importantly, what you need to qualify.
In short, to open an RDSP, you must:
- Be a resident in Canada.
- Have a valid temporary or permanent Social Insurance Number (SIN).
- Qualify for the Disability Tax Credit. Who qualifies for the Disability Tax Credit?
- Be under the age of 60
A few things we learned:
- File income tax back to age 15 for maximum grants -will vary based on individual contributions
- A portion of your RESPs can be rolled over into RDSPs
- It is well worth it to have an advisor that is specialized. Ours is Ron Malis at Reegan Financial.
- How much will the government contribute to my (or my child’s) RDSP this year? If you contribute less, you risk missing out on government contributions. Read more from Ron
- How much do I need to contribute to maximize the available government contributions? The RDSP Calculator answers a myriad of other questions you might have, including:
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- When can I withdraw money from my RDSP without government penalties?
- What would the penalties be if I make a withdrawal?
- How much will the government provide if I contribute smaller amounts each year?
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NOTES:
Other RDSP questions answered by Ron https://reeganfinancial.com/blog/