RDSP

Key features of RDSPs

A Registered Disability Savings Plan (RDSP) is a means of supporting those who are disabled and in receipt of Disability Tax Credit to save for the future.  Here are some important things to know about these savings plans:

  • The person who is registered as disabled and who will benefit from the savings in the future is known as the beneficiary.
  • The person who opens and manages the plan on an ongoing basis is known as the plan holder. The beneficiary and plan holder can be the same person or different people.
  • Payments can be made into the RDSP until the beneficiary is 59 years of age.
  • Holding an RDSP does not mean that a beneficiary is no longer eligible to receive disability benefits.
  • There is a lifetime contribution ceiling of $200,000 into the plan but there isn’t an annual cap on the value of contributions.
  • While there is no tax due on the investment earnings as long as they remain in the plan and are not withdrawn, the contributions are not tax deductible.
  • There are a couple of federal schemes i.e.: the Canada Disability Savings Grant and the Canada Disability Savings Bond, which the beneficiary may be eligible to receive government contributions into the RDSP from.
  • Regular payments must be taken from the plan by the time the beneficiary reaches the age of 60.
  • The savings held in the plan can be invested in a variety of different ways, depending on where the plan is opened.

Latest News

Estate Planning for Business Owners

What happens when the children grow up and they are no longer dependent on their parents? What happens to your other "baby"- the business? Estate planning for business owners deals with the personal and business assets.

Retirement Planning for Business Owners - Checklist

As a business owner, one of your challenges is learning how to balance between reinvesting into the business and setting money aside for personal savings. Since there are no longer employer-sponsored pension plans and the knowledge that retirement will come eventually, it’s important to have a retirement plan in place. We've put together an infographic checklist that can help you get started on this.

Retirement Planning for Business Owners

Retirement planning can be a complex process for us all, but if you are the owner of a small business it may can get even more complicated, due to the various factors and circumstances that you have to take into consideration. A common mistake made by small business owners is reinvesting extra money to grow their business, at the expense of putting it aside to save for their retirement.

Investing as a Business Owner

Many business owners have built up earnings in their corporation and are looking for tax efficient ways to pull the earnings out to achieve their personal and business financial goals. We outline the factors to consider when investing as a corporation.

Financial Planning for Business Owners

Financial Planning for business owners is often two-sided: personal financial planning and planning for the business. Business owners have access to a lot of financial tools that employees don't have access to; this is a great advantage, however it can be overwhelming too. A financial plan can relieve this. A financial plan looks at where you are today and where you want to go. It determines your short, medium and long term financial goals and how you can reach them. For you, personally and for your business.

CLU Comment: Non deductible fines and penalties, Fees paid to a power of attorney, Managing inherent risk is a personal choice, Summer accidents highlight need for estate plans

Non deductible fines and penalties Fees paid to a power of attorney Managing inherent risk is a personal choice Summer accidents highlight need for estate plans

10 Essential Decisions for Business Owners

Business owners can be busy… they’re busy running a successful business, wearing lots of hats and making a ton of decisions. We've put together a list of 10 essential decisions for every business owner to consider.

The Difference between Segregated Funds and Mutual Funds

Segregated Funds or Mutual Funds? What's the difference?

Financial Advice

An advisor can help you determine where you are today financially and where you want to go. An advisor can provide you guidance on how to reach your short, medium and long term financial goals.