“As a family, we had often received information about RDSPs from various organizations, but we always put it on hold,” says Gusikoski. “It was like, ‘Yeah, we can do it.'”
Your family is just not alone. More than 1.45 million Canadians are eligible to open an RDSP, but only about 36% of them had one at the tip of 2022, in keeping with the newest data from Statistics Canada.
Only 17% of Canadians surveyed are aware of RDSPs, and lots of don’t understand how these registered accounts work, in keeping with a recent study commissioned by Concentra Trustan Equitable Bank company that gives services to most Canadian credit unions. Gusikoski, director of registered plans at Concentra Trust, says she didn’t realize the RDSP could be a very good fit for Cody until she herself began exploring the RDSP offering as a part of the corporate’s work with credit unions. When she did, the advantages were immediately obvious.
“This was actually the perfect opportunity for me to go through the process from start to finish,” says Gusikoski. “It quickly became clear to me that the lack of awareness around the RDSP – including its government grants, growth potential and how it works – has resulted in a huge missed opportunity for Canadians with disabilities.”
What is an RDSP?
Launched by the Government of Canada in 2008, the Registered Disability Savings Plan is a registered account designed to assist eligible individuals with a disability save for the long run. RDSPs are offered by quite a lot of financial institutions, including credit unions.
To grow to be an RDSP beneficiary, an individual have to be approved to receive the federal money Disability Tax Credit (DTC)have a Social Security Number (SIN), be a Canadian resident and be under 60 years of age. A beneficiary can only have one RDSP.
Like other registered accounts, an RDSP offers tax benefits: any growth within the account is just not taxed until the funds are withdrawn. Grants, bonds and interest are taxed within the hands of the beneficiary, personal contributions should not taxed.
An RDSP consists of three segments: contributions, grants and bonds. Contributions are what you or your loved ones contribute to the RDSP. This is how the grants and bonds work:
