RCDC In Addition too

Anyone who has been approved for the Disability Tax Credit can open a Government approved bank account, where additional funds are contributed by the Government. This account is called a Registered Disability Savings Plan (RDSP). The RDSP is a savings plan that can be established at any participating Canadian banking institution in the name of qualifying individuals or their representatives. It is intended as a long-term financial security savings plan of a person who is eligible for the Disability Tax Credit. Contributions to an RDSP are not tax deductible and can be made until the beneficiary turns 60. Funds that are withdrawn from the RDSP are not considered as taxable in income for the beneficiary when they are paid out of an RDSP. However, the Canada Disability Savings Grant (CDSG), Canada Disability Savings Bond (CDSB) and Investment Income (IE) earned in the plan are as taxable income for the beneficiary when paid out of the RDSP. A CDSG grant is an amount that the Government of Canada contributes to an RDSP. The Government will match grants of 300, 200, or 100 percent, depending on the beneficiary’s family income and the amount contributed. An RDSP can get a maximum of $3,500 in matching grants in one year, and up to $70,000 over the beneficiary’s lifetime. A grant can be paid into an RDSP on contributions made to the beneficiary’s RDSP until the beneficiary turns 50.  A CDSB bond is an amount paid by the Government of Canada directly into an RDSP. The Government will pay bonds of up to $1,000 a year to low-income Canadians with disabilities. No contributions have to be made to get the bond. The lifetime bond limit is $20,000. A bond can be paid into an RDSP until the beneficiary turns 50.