If your loved one has a disability, you’ve likely been looking into the financial help that’s available to him or her. In Canada, people with disabilities can apply for the Registered Disability Savings Plan (RDSP). But you might be wondering: do you or your loved one qualify for this financial plan?
Do I Make Too Little or Too Much Money?
The good news is that with an RDSP, people of all incomes can qualify. No matter how much your annual income is, you could qualify for some financial benefit. However, the RDSP grant is calculated on a sliding scale, with families under a certain income receiving larger benefits.
How Do I Qualify?
Now that you know income is not a deciding factor in getting an RDSP, you may be wondering exactly what qualifications are necessary. The three main conditions for recipients to qualify for an RDSP are:
- Must be under the age of 60 when contributions are made
- Must be a Canadian citizen with a social insurance number
- Must be eligible for the Disability Tax Credit
- Income Tax Requirements
In addition to the above requirements, doing your income taxes - for both the beneficiary and the plan holder - is important in the qualification process. When you apply for the RDSP, you must submit your income tax records for the two years prior to the year you’re applying for. For example, because Ottawa allows for 10-year carry forward of unused grants and bonds, if you’re applying for 2008, you need to submit your 2006 income tax records.
The RDSP is an excellent way to maintain peace of mind that your loved ones with disabilities will continue to be provided for after you’re gone. Even plan holders with a substantial income should apply, as the RDSP ensures your loved one will maintain their government benefits even after you’re gone.
Still have questions about your eligibility? Contact Ken White and the team at Guelph Financial!
Source: http://www.cra-arc.gc.ca/rdsp/