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RDSP Offers Financial Support with “Carry-forward Measure”

August 15, 2013
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In 2008, the Government of Canada established the RDSP. The acronym stands for Registered Disability Savings Plan. The government offers financial support to people with disabilities by matching RDSP investments with disability grants and bonds. This program makes it possible to earn up to $200,000 in a lifetime. With the “Carry-forward Measure,” this plan produces significant investment benefits.

RDSP-Offers-Free-Money-with-“Carry-forward-Measure”

People with disabilities may be eligible for RDSP if they qualify for the Disability Tax Credit (DTC), are under 60 years of age, and are residents of Canada.

How Does the RDSP Offer Free Money?

Most people are unaware of how to make the most of their RDSPs. There are no secrets here: the RDSP rules help maximize income options for people with disabilities in the future. Even though there is a cap on how much the government will contribute in a year and lifetime, the “Carry-forward Measure” is offered through grants and bonds that match most contributions by certain percentages. Some matching rates are up to 300 percent.

What is the “Carry-forward Measure”?

The “Carry-forward Measure” makes it possible to have grant and bond entitlements applied to the RDSP for years past (back to 2008 when the RDSP was established).

What is the Best Possible Scenario?

How much the government of Canada will match is dependent of the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB). Both opportunities are offered on a case by case basis. The income level of an individual or family will be taken into account when deciding how much the government will match.

Nevertheless, the highest amount of financial support issued to the RDSP in one year includes some of the following RDSP matching rates.

– Through the CDSG, Canada will match 300 percent for the first $500 in contributions each year and 200 percent for the next $1,000. This is for families who have net incomes below $85,414. For families earning more than that amount, 100 percent of $1000 is matched each year. (These are matching rates from year 2012.)

What do you need to Qualify for the RDSP?

The government of Canada wants to see the financial needs of people with disabilities taken care of for years to come. This is why they make the RDSP available to residents of Canada who are younger than 60 years of age and qualify for the Disability Tax Credit. The “Carry-forward Measure” is applicable to all accounts that belong to beneficiaries under the age of 49.

Setting up an RDSP is something to consider. This is how the government of Canada offers financial support and free money to people with disabilities. These funds can secure a healthy future despite income restrictions.

With the Canada Disability Savings Grant, Canada Disability Savings Bond, and “Carry-forward Measure,” individuals can accrue a significant amount of money for the future.

Applying for the Disability Tax Credit is the first step in becoming eligible for RDSP. To ensure correct filing of these documents, it is important to partner with benefit professionals who can guide this process. The National Benefit Authority is the largest provider of Disability Tax Credit services in Canada. Contact the agency for more information about the Disability Tax Credit and RDSP.

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