Thank you to those who joined our recent RDSP webinar. Whether you were able to attend or not, I wanted to share the key points and resources with all of you because many families find this information helpful.
During the session, we went through the important parts of the RDSP, including who qualifies, how the matching grants and saving bonds work, withdrawal rules, tax implication, and estate-planning considerations for the future.
Since several people asked for extra guidance, here are a few helpful tips:
- Double-check your Disability Tax Credit (DTC) status. Confirm whether the DTC is approved permanently or just for a limited period. If you’re unsure, you can call CRA to confirm.
- Review your annual matching grant amount. Each year, the matching grant entitlement can be found in the Letter of Annual Grant Entitlement, usually mailed between February and March. If you don’t receive it, you can call the RDSP Grant and Bonds Department to find out. (1866-204-0357)
- Remember to file taxes every year. CRA needs your family net income to calculate how much grant and bond you qualify for.
- At age 17, the children with disability must start filing taxes. As the beneficiary becomes an adult, the grant and bond amounts are based on their income (and their spouse’s income if married), so filing taxes becomes very important.
- Work with a licensed financial professional who understands your situation. It’s important to have someone who is fully licensed and experienced with disability planning, RDSP rules, and how to plan for the family when a disability is involved.
Additional resources:
- How to apply for the Disability Tax Credit (DTC) – simple, step-by-step with approval tips
- RDSP Guide – a comprehensive resource that covers many key details you need to understand about an RDSP.
If you ever have questions about your own situation, feel free to email me anytime. I’m always happy to help.
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