A financial services advisor can help you set up a registered disability savings plan if you are eligible. Many Canadians are ill informed and this article will help to dissect what a registered disability savings plan is and how you can qualify for one. The Government of Canada introduced the registered disability savings plan approximately five years ago. The number of accounts being opened is steadily growing and you can open one easily if you meet the criteria. Registered disability savings plans make a huge difference for those of the population that face large financial obstacles. Since registered disability savings plans have been introduced, the target audience is not using this tool as much as it should be utilized. The main target audience is of disabled persons and their families who greatly underuse these plans. Keep reading to find out more information about what registered disability savings plans are and how you can get started with a financial services advisor. These tax assisted registered disability savings plans were one of the first of their kind in the world to be announced and specifically provide financial relief to those with disabilities. There is lack of awareness and misconceptions about registered disability savings plans that need to be clarified and straightened out. Many believe that you must put a significant amount of money into the plans to receive any help from the government. This is not true, disabled persons can often receive thousands of dollars without having to make any contributions to their own plans. A financial services advisor can inform you of all the details of how much the Canadian government will provide you with over a certain course of time. A registered disability savings plan is similar to a registered education savings plan. It is similar in ways such as that the contributions made to the plan are not tax deductible but the income growing within the plan is allowed to grow on a minimal tax basis until the funds are withdrawn. Contributions may further be augmented in the form of federal grants and savings bonds once you apply for a registered disability savings plan that can provide direct assistance depending on your income. To open up a registered disability savings plan with a financial services advisor, you must meet three pieces of criteria. Firstly, you must be under the age of sixty when contributions are made towards the registered disability savings plan. The second requirement is crucial in that you must be a Canadian resident with a social insurance number. The last element to being eligible for a registered disability savings plan, also known as an RDSP is that you must be eligible for the disability tax credit. The third criteria is to ensure to the government and a financial services advisor that plans can. Alexandra Blair is the author of this article on Raising awareness and discussing requirements for a Registered Disability Savings Plan - become informed. Find more information about Registered Disability Savings Plan here.
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