As a parent or guardian of someone with a severe or prolonged
disability, planning and saving for their future needs can be
challenging. The Registered Disability Savings Plan (RDSP) makes
saving easier. Below, we answer some common questions about these
plans.
What is an RDSP and whom is it intended to benefit? How do you
qualify?
An RDSP is a special type of savings plan that can assist in
providing long-term financial security for a beneficiary who has a
prolonged and severe physical or mental impairment. To qualify as a
beneficiary of an RDSP, the individual must be eligible to claim
the disability tax credit (DTC). The DTC requires a signed
Disability Tax Credit Certificate from a medical doctor or other
medical specialist, stating that the disabled person meets the
criteria set out in the Income Tax Act. The plan's beneficiary
must also have a valid social insurance number, be a resident of
Canada at the plan's inception and be under the age of 60.
