An RDSP Can Add Up to Great Savings
A Registered Disability Savings Plan (RDSP) is a registered plan available at SCU through Credential Asset Management Inc. Launched in 2008 by the Federal Government, it has a maximum $200,000 lifetime contribution limit. An RDSP is a matched savings plan for Canadian residents under 60 years of age, receiving the Disability Tax Credit, and who hold a valid social insurance number. The government may contribute up to $3 for every $1 you put into the fund. All funds are tax sheltered and are not impacted by federal and most provincial social benefits. There are many variables and options, so call the SCU Wealth Management department to find out more. You can also visit the CRA Website.
Contributions can be matched, based on family income, with up to $70,000 in Canada Disability Savings Grants. The Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB) are federal programs that provide payments to RDSPs to encourage long-term savings through an RDSP. Grants and bonds are available to beneficiaries up until December 31st in the year they reach age 49.
For more information, please visit the Government of Canada website:
Anyone (family, friends, neighbours) can contribute to an RDSP, giving people who want to help a way to do so. Although there is no annual contribution limit, a maximum amount of $200,000 per beneficiary can be contributed during the lifetime of the RDSP. Contributions are not tax-deductible; however, the earnings grow tax free while held in the plan.
Whenever money is withdrawn from an RDSP, all or part of the grants and the bonds that have been in the RDSP for fewer than 10 years must be repaid to the Government at a rate of $3 paid back for every $1 withdrawn, up to the total amount of grants and bonds paid into the RDSP in the last 10 years. Repayments to the Government of Canada will be applied starting with the oldest grants and bonds paid into the plan first.
Benefits to Members
• No impact on federal and most provincial social benefits
• Tax-sheltered growth
• Another investment vehicle
• Carry-forward now available back to 2008 where eligible
RDSPs are made available to SCU members through Credential Asset Management with mutual fund options. There are many variables and options, so call our Wealth Management department to find out more.
* Mutual funds are offered through Credential Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise states, mutual fund securities and cash balances are not insured nor guaranteed, their values change frequently and past performance may not be repeated.