A Registered Disability Savings Plan (RDSP) is a savings plan intended to help save money for someone who is eligible for the disability tax credit (DTC). This money will go toward their long-term financial security.
An RDSP is similar to a Registered Retirement Savings Plan (RRSP) in that it is a tax-sheltered account. This means the money in the account grows tax-free. With an RDSP, the account holder may also enjoy substantial grants as long as the RDSP has been opened before they are 49 years old.
There are many rules and regulations to be aware of when it comes to tax implications or whether or not you can receive substantial grants, so make sure you speak with a financial planner to better understand what an RDSP can do for you. Book your free consultation today.