Helping Canadians with Disabilities Save for the Future

October 20, 2009

Macleod – Disabled residents in the riding of Macleod have opportunities to save money for the future through the Registered Disability Savings Plan, Canada Disability Savings Grant, and Canada Disability Savings Bond.

Budget 2007 announced the Registered Disability Savings Plan (RDSP), the Canada Disability Savings Grant and the Canada Disability Savings Bond as ways to help people with disabilities and their families save for the future. The Government of Canada is proud to have created these saving mechanisms, the first initiatives of their kind in the world.

“These unique savings options will have a positive impact for some of my constituents,” said Ted Menzies, Member of Parliament for Macleod and Parliamentary Secretary to the Minister of Finance. “These programs will help people with disabilities and their families save for the future.” continued Menzies.

Any person under the age of sixty who is eligible for the Disability Tax Credit (Disability Amount) and is a Canadian resident, is eligible for an RDSP. Parents or guardians may open an RDSP for a minor. Anyone with written permission from the holder can contribute to an RDSP.

The Government of Canada will pay individuals a matching grant of up to 300 percent each year, depending on the amount contributed and the beneficiary’s family income. The Government of Canada will deposit up to $3,500 in grants each year to individuals, with a limit of $70,000 over the beneficiary’s lifetime.

The Government of Canada will also pay a bond of up to $1,000 a year into the RDSPs of low-income and modest-income Canadians, with a limit of $20,000 over each beneficiary’s lifetime. No contributions are necessary to receive the bond. 

Earnings accumulate tax-free until money is taken out of the RDSP. There is no annual contribution limit to the RDSP, but there is a lifetime contribution limit of $200,000. Grants and bonds are intended to encourage long-term savings. As such, they must remain in an RDSP for at least 10 years. Money paid out of an RDSP will not affect eligibility for federal benefits such as the Canada Child Tax Benefit, the Goods and Services Tax Credit, Old Age Security or Employment Insurance.   RDSPs will have little or no impact on provincial and territorial assistance. Constituents are encouraged to contact the Alberta government for further details.

For more information on the grant and bond, visit www.disabilitysavings.gc.ca or call 1 800 O-Canada (1-800-622-6232). For TTY service, call 1-800-926-9105.  For more information on the RDSP and eligibility criteria, visit the Canada Revenue Agency Web site at www.cra.gc.ca/disability or call 1-800-959-8281 (TTY users contact 1-800-665-0354).