RDSP
Loopholes Tagged "RDSP"
Plain-English guides to Canadian legal rights and workarounds related to RDSP.
Low-Cost and No-Cost Bank Accounts — Switch to a Federally Backed Cheap Account Instead of Paying Full Retail Fees
Federally regulated banks that signed the FCAC commitment must offer low-cost accounts for $4/month or less, and no-cost accounts for certain groups.
Registered Disability Savings Plan — Up to $90,000 in Free Government Money
Canadians with disabilities who qualify for the Disability Tax Credit can receive up to $3,500/year in government grants and $1,000/year in government bonds through the RDSP — money that requires no matching contribution from low-income families.
The Disability Tax Credit (DTC) & Backdated Claims
The CRA's Disability Tax Credit provides a non-refundable federal tax credit worth up to $1,500/year — but most Canadians who qualify never claim it.
RDSP Assistance Holdback Rule — Avoid Triggering a Big Grant and Bond Clawback
RDSP withdrawals can trigger repayment of recent grants and bonds under the assistance holdback amount rules.
RDSP Rollover From a Deceased Parent's RRSP or RRIF — Move Retirement Money Into a Disabled Child's RDSP
In some cases, amounts from a deceased parent's or grandparent's RRSP, RRIF, or registered pension plan can be rolled into a financially dependent infirm child's or grandchild's RDSP on a tax-deferred basis.