An RDSP is the ideal way to save for the long-term financial security of a beneficiary who is eligible for the disability tax credit
. The RDSP beneficiary must also:
- Have a valid Social Insurance Number
- Be eligible for the Disability Tax Credit (DTC)
- Be a Canadian Resident when the plan is started and when all contributions are made
- Be under the age of 60 (except when transferring in an existing RDSP)
The RDSP Plan Holder
An individual with a disability can open an RDSP and be the sole owner if they have reached the age of majority.
If the beneficiary is a minor, a qualified plan holder with a SIN (or Business Number) can be:
- A legal parent, guardian, tutor, or curator for the beneficiary
- An individual who is legally authorized to act on behalf of the beneficiary
- An organization legally authorized to act on behalf of the beneficiary
A plan holder who is not the beneficiary does not have to be a Canadian resident.
Contributing to an RDSP
Anyone can contribute to an RDSP with the written permission of the plan holder. While the plan holder does not have to be a resident of Canada, the beneficiary must be a resident of Canada when the plan is opened and when each contribution is made to the plan.
Contributors will not be entitled to a refund of their contributions.
Key RDSP Features
- Provides for tax-deferred savings
- Contributions to an RDSP may qualify for the Canada Disability Savings Grant (CDSG) and/or the Canada Disability Savings Bond (CDSB) offered by the Government of Canada. Visit the Government of Canada’s Employment and Social Development Website for more information
- No annual contribution limit, only a lifetime contribution of $200,000 to an RDSP until the end of the year the beneficiary turns 59
- Contributions are not tax-deductible and there is no annual RDSP contribution limit
- While contributions withdrawn from an RDSP are not included in the beneficiary’s income for tax purposes, government grants, bonds, and investment income earned within the RDSP are
RDSP Investment Options at Meridian
- Professionally managed mutual funds* assist in meeting the long-term goals of the RDSP’s beneficiary
Start building your RDSP
Talk to a Meridian Wealth Management professional about RDSPs and investment options at Meridian. We’ll give you straightforward answers to your questions and work with you to ensure your beneficiary’s long-term financial security.
Let us know when it is convenient for you to talk with one of our wealth management professionals so they can take a closer look at your investment choices.