I hadn’t even heard about RDSPs until I had gotten a letter in the mail.
So what does RDSP stand for? RDSP = Retirement Disability Savings Plan. So essentially, it’s almost like an RRSP.
Why is an RDSP special? Well, depending on your circumstances (for example, if your family income is below $91,831), if you contribute money to your RDSP, the Federal Government will match your contribution…by TRIPLE! Yes, $3 for every $1 that you contribute. This is called the Canada Disability Savings Grant.
Now, in addition to this, if you’re considered a low income earner (as in, you make LESS than $25,584 annually), then you qualify for the Canada Disability Savings Bond. The Federal Government will invest $1000 a year for TWENTY years for you. Crazy, huh?
Your eligibility for this grant is based on your annual income; the government determines your eligibility based on the info they receive when you do your taxes.
So, what do you need in order to qualify to open an RDSP? Well, a few things.
- You must live in Canada
- You must have a social insurance number.
- You must qualify for the Disability Tax Credit.
When I applied for this, I had to print off a form, fill it out, and have my doctor fill out a section of the form and then sign it. It basically verifies that you do in fact have a disability.
So what if you qualify? You’ll be like me thinking “erh mah gawd! Why didn’t I find out about this earlier!? So much time and money has been wasted!”
The carryover provision allows you to receive grants from the past 10 years, provided you qualified for disability 10 years ago. If you’ve had an “eligible” disability for 5 years, then you can receive grants from the past 5 years.
Please read the instructions and criteria carefully. Based on some of the criteria for the disability tax credit, I don’t think the guidelines given adequately cover the different types of ailments people suffer from (lupus included). Please discuss this with your doctor.
The RDSP website can be found by clicking here.