Registered Disability Savings Plan:

The Registered Disability Savings Plan is a new plan that will allow funds to be invested tax-free until withdrawal. It is intended to help parents and others to save for the long-term financial security of a child with a disability. The plan structure is similar to a Registered Education Savings Plan.
Contributions to an RDSP will be eligible for the new Canada Disability Savings Grant. There is also a new Canada Disability Savings Bond for individuals with lower family net incomes.

Any person who is:

• Eligible for the Disability Tax Credit and is a Canadian resident; or
  
• A parent or legal representative of a person who is resident in Canada and is eligible for the Disability Tax Credit

Anyone can contribute to an RDSP; however, contributions are limited to a lifetime maximum of $200,000 in respect of the child, with no annual limit. Contributions will be permitted until the end of the year in which the child attains 59 years of age.

The Registered Disability Savings Plan (RDSP) will come into effect as soon as possible in 2008.

Along the same lines is the Canada Disability Savings Grant and the Canada Disability Savings Bond. These are two programs designed to augment funds in the RDSP. The government will contribute, in the form of Canada Disability Savings Grants, funds equivalent to 100% to 300% of RDSP contributions, up to a maximum of $3,500 depending on the net income of the beneficiary's family. The government will also contribute up to $1,000 annually in Canada Disability Savings Bonds depending on the net income of the beneficiary's family.

As more information becomes available concerning these products we will make it know to you.

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