The Registered Disability Savings Plan (RDSP) is a registered saving plan that is intended to help parents and others save for the long-term financial security of a person with severe or prolonged disabilities who are eligible for the Disability Tax Credit. This plan allows the beneficiary to accumulate funds by means of deposits and tax-deferred growth. A RDSP can hold many types of investments, which may include bonds, guaranteed investment certificates (GICs), mutual funds, savings accounts and stocks.

Q. What does this mean for my son or daughter?

A.   Depending on the family income for children or the adult’s income, it is possible to make  a contribute of $1500.00 dollars a year and the Federal Government through bonds and grants could  provide up to an additional $3500.00 per year up to $70,000, over the “lifetime” of RDSP.  Or with no contribution on your part, the government will provide $1000.00 per year (dependant on income levels).

The deadline for opening an RDSP, making contributions and applying for the matching Grant and the income-tested Bond for the 2008 contribution year has been extended to March 2, 2009 from December 31, 2008. The 2009 RDSP contribution year will begin March 3, 2009. In order to set up a RDSP all you need to do is contact the Bank of Montreal and they will provide you w ith the forms to set up a Plan and to apply for both grants and bonds available form the Federal Government.  Phone 1-800-665-7700 or visit http://www.bmo.com/investments for step by step instructions.

As of February 16, 2009 the Royal Bank of Canada will also be offering
RDSPs - the contact number is 1-800-463-3863.

For more information, please visit the Government of Canada website http://www.hrsdc.gc.ca/eng/disability_issues/index.shtml.