Quite interesting how there are getting to be more and more savings plans. As in most things in life, you can look at them and see the good and the bad.
Here is what is wrong with this.
You are giving the government control over more and more of your money.
Money in a government program is money where the government can change the rules at will.
And if you run into a tax problem, unlike an RRSP, CRA can just go in and take your money in the same way they take money from people’s bank accounts.
And as this is a plan where you place your AFTER TAX dollars….. you better make sure you understand just what the heck you are getting into.
For me, I love my country, I don’t trust my government.
This same government who says they don’t have to observe Canada’s laws…. eg…. charter of rights and freedoms, when they go out of the country…. It is interesting that they say we have no jourisdiction over the governments offshore policies, but they have jurisdiction over our offshore wealth.
Hmmmmm

Dan White

Registered Disability Savings Plans: A future of financial security

Wednesday, September 30th, 2009 | 11:50 am

Canwest News Service

If you or someone in your family is eligible for the Disability Tax Credit, there is a new registered savings program that you should know about: the Registered Disability Savings Plan (RDSP).

The RDSP was introduced by the Federal Government. This unique plan is designed to help Canadians to save and invest for themselves or a disabled family member in a tax-deferred environment.

“The RDSP is a welcome addition to existing government programs designed to help ensure the long-term financial security for people with disabilities,” said David Birkbeck, head of registered products strategy at Royal Bank of Canda.

Here’s what you need to know to make the most of an RDSP:

Who can qualify?

The beneficiary of an RDSP must be a resident of Canada with a Social Insurance Number, under age 60 and be eligible for the Disability Tax Credit (DTC). To qualify for the Disability Tax Credit, the individual must have a prolonged and severe impairment in physical or mental function, which is confirmed by a qualified medical practitioner and accepted by the Canada Revenue Agency (CRA).

Who can open an RDSP?

The following people can open an RDSP:

-A person with a disability, who is of the age of majority and has the legal capacity to manage his or her finances.

-The parent of a person with a disability who has not attained the age of majority.

-A guardian or other representative who is legally authorized to act on behalf of a person with a disability.

Tell me about making contributions

Contributions to an RDSP are not tax deductible, but they grow within the plan on a tax-deferred basis. There is no annual contribution limit, but there is a lifetime limit for total contributions of $200,000. Contributions can be made up until the end of the year the beneficiary turns 59.

Is there government assistance?

Contributions may be eligible for federal government matching grants (Canada Disability Savings Grant) up to $3,500 annually and the plan may be eligible for government bond amounts (Canada Disability Savings Bond) up to $1,000 annually. The money in an RDSP can be used for any purpose, as long as it is for the benefit of the plan’s beneficiary.

Within Registered Disability Savings Plans, RBC clients will have access to a wide variety of investment options including RBC Funds, RBC GICs and RBC Savings Deposits. There will be no annual administration or withdrawal fees. Clients will also have the opportunity to make regular, pre-authorized contributions.

RBC has also joined forces with Planned Lifetime Advocacy Network (PLAN), a non-profit organization which led the advocacy for the creation of the Registered Disability Savings Plan, to help educate and offer advice to Canadians. As PLAN’s preferred national RDSP provider, RBC is working closely with PLAN to assist Canadians with disabilities and their families.

For more information please visit: www.rbc.com/rdsp.

For more information on Planned Lifetime Advocacy Network (PLAN) or for more about RDSPs please visit: www.plan.ca or www.rdsp.com.