Guest guest Posted March 25, 2007 Report Share Posted March 25, 2007 Hello This info is very important to Canadians who are eligible for the Disability Tax Credit. If the budget passes this new program starts in early 2008. Here is a link to the info (or see below): http://www.cra-arc.gc.ca/agency/budget/2007/rdsp-e.html Take care Q.1 What is the Registered Disability Savings Plan (RDSP)? A.1 The Registered Disability Savings Plan is a new plan that will allow funds to be invested tax-free until withdrawal. It is intended to help parents and others to save for the long-term financial security of a child with a disability. The plan structure is similar to a Registered Education Savings Plan. Contributions to an RDSP will be eligible for the new Canada Disability Savings Grant. There is also a new Canada Disability Savings Bond for individuals with lower family net incomes. Q.2 Who will be eligible for the Registered Disability Savings Plan (RDSP)? A.2 Any person who is: * Eligible for the Disability Tax Credit and is a Canadian resident; or * A parent or legal representative of a person who is resident in Canada and is eligible for the Disability Tax Credit. Q.3 Who can contribute to a RDSP and how much? A.3 Anyone can contribute to an RDSP; however, contributions are limited to a lifetime maximum of $200,000 in respect of the child, with no annual limit. Contributions will be permitted until the end of the year in which the child attains 59 years of age. Q.4 When will the Registered Disability Savings Plan (RDSP) come into effect? A.4 As soon as possible in 2008. Check our Web site often - all new forms, policies and guidelines will be posted on the CRA's Web site as they become available. Q.5 What are the Canada Disability Savings Grant and the Canada Disability Savings Bond? A.5 These are two programs designed to augment funds in the RDSP. The government will contribute, in the form of Canada Disability Savings Grants, funds equivalent to 100% to 300% of RDSP contributions, up to a maximum of $3,500 depending on the net income of the beneficiary's family. The government will also contribute up to $1,000 annually in Canada Disability Savings Bonds depending on the net income of the beneficiary's family. Q.6 Where can I get more information about the Registered Disability Savings Plan (RDSP)? A.6 More information about this plan will be available shortly. Please check the CRA's Web site regularly for updates. In the meantime, please consult the Department of Finance's Budget 2007 documents for details. Quote Link to comment Share on other sites More sharing options...
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