RDSP : Registered Disability Savings Plan

[dj_rice]

Does anyone have one of these?

Just want to make sure I'm reading the info correctly that the savings bond and grants the gov deposits to match your contributions are FREE and don't have to be paid back?

ChatGPT says the money is free but I recall reading on the CRA it has to be paid back in 10 years or something along those lines

[TomcoPDR]

I just want to see a registered living plan where my salary doesn’t get taxed at all

[dj_rice]

Heres the answer I got from a banking professional, so FYI to those

Bonds are free if you are eligible and open an RDSP.
Grants are matching money, you put in money to get matching Grants (3:1 then 2:1).

All money is yours to keep as long as you make no withdrawals from the RDSP for 10 years since the last government contribution. If you do not wait 10 years since the final government contribution then there is a 300% repayment penalty until all government money is repaid.

[eblend]

My sister just got in on this last year, yah it's free money if you have a disability. She put in like 3K or something, and they gave her 10k into this account. This year she has to put in some as well and they will give her another 10k or something. I don't know all the details, but it's basically for people with a disability to be able to save for a retirement where they may not be employed or earn enough money to survive during retirement years.

[dj_rice]

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My sister just got in on this last year, yah it's free money if you have a disability. She put in like 3K or something, and they gave her 10k into this account. This year she has to put in some as well and they will give her another 10k or something. I don't know all the details, but it's basically for people with a disability to be able to save for a retirement where they may not be employed or earn enough money to survive during retirement years.

Thanks for info. Yeah I got approved for the DTC already. I got all my taxes back-dated re-assessed and got a huge return coming back from the re-assessment. Once you get the approval for the DTC, all your taxes get a $9800 tax credit so they re-assess all your taxes from the date your disability started so they can back-date the taxes to even 2012 or etc, then its 10 years back or future. Totally worth it for disabled people who dont know

Just trying to see if this RDSP is worth it or dump it all into RRSP or TFSA

If you put in $1500, then contribute $3000. And its yearly. Till your 60 I believe.

[ExtraSlow]

I need to do the paperwork for my one kid. Have the provincial stuff done but that's much less onerous.

[dj_rice]

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I need to do the paperwork for my one kid. Have the provincial stuff done but that's much less onerous.

Is that different credit?

I just applied for the DTC online through CRA. Filled out my portion. Got a code. Bring code to medical professional (doctor, psychiatrist/psycologist, etc...) they fill out their portion and then use your code at the end of the form and submit. Had to pay the doctor $70 to do this though but it can be claimed back on taxes the CRA said

[killramos]

Man. Our tax code and so sucks systems are way to fucking complicated

[91_Integz]

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Thanks for info. Yeah I got approved for the DTC already. I got all my taxes back-dated re-assessed and got a huge return coming back from the re-assessment. Once you get the approval for the DTC, all your taxes get a $9800 tax credit so they re-assess all your taxes from the date your disability started so they can back-date the taxes to even 2012 or etc, then its 10 years back or future. Totally worth it for disabled people who dont know

Just trying to see if this RDSP is worth it or dump it all into RRSP or TFSA

If you put in $1500, then contribute $3000. And its yearly. Till your 60 I believe.

You should absolutely contribute as much as you can into the RDSP - it's the program with the best grants available.

If your income is less than $111,733 then;
- you get $3 for every $1 contributed, up to $500 per year
- then you get $2 for every $1 contributed on the next $1,000 per year

So, basically, you contribute $1500, and they give you $3,500.

If your income is above $111,733 then you get $1 for every $1 contributed, up to $1,000 per year

You can receive grants up until you are 49 years old and make lifetime contributions of $70,000. You can also catch up on three years at once - so if you qualify for DTC say as of 2022, you could contribute $10,500 this year.

[ExtraSlow]

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Is that different credit?

The provincial disability supports are completely different from the federal ones. The Alberta stuff isn't a "tax credit". We are in the FSCD (for kids) system. We've been recommended to apply for the Federal DTC and RDSP. Hoping to get that application in this year.

[91_Integz]

Once you qualify for the federal DTC, then you are eligible to open an RDSP. You'll need to provide a copy of the letter you get from the CRA that outlines the years you are "DTC eligible" to whatever institution you choose to open the RDSP with.

[dj_rice]

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Once you qualify for the federal DTC, then you are eligible to open an RDSP. You'll need to provide a copy of the letter you get from the CRA that outlines the years you are "DTC eligible" to whatever institution you choose to open the RDSP with.

Thanks dude!! I'm just stoked about the tax return LOL. Daddy Trudeau just bought new turbos for the Infiniti

[thinmyster]

We FINALLY got ours setup and funded for our son. CRA had my wifes maiden name listed and TD used her married name. What a pain!