Registered Disability Savings Plan (RDSP)

For 2008 and later years, the government has introduced a new savings plan for the long-term disabled. The plan will permit parents to contribute funds to a plan to provide for the future expenses of disabled children, and will allow the older disabled and their families (and others) to contribute to a plan for later years. Contributions to the plan will not be deductible, but income earned in the plan will not be taxed while in the plan. Plan investments are, in effect, governed by RRSP investment rules, with certain exceptions. Plan contributions are subject to a lifetime limit of $200,000. Plan contributions will, to some extent, be matched by government contributions, and, in addition, the government will make continuing contributions for low-income families.
 

Registered Disability Savings Plan (RDSP)

For 2008 and later years, the government has introduced a new savings plan for the long-term disabled. The plan will permit parents to contribute funds to a plan to provide for the future expenses of disabled children, and will allow the older disabled and their families (and others) to contribute to a plan for later years. Contributions to the plan will not be deductible, but income earned in the plan will not be taxed while in the plan. Plan investments are, in effect, governed by RRSP investment rules, with certain exceptions. Plan contributions are subject to a lifetime limit of $200,000. Plan contributions will, to some extent, be matched by government contributions, and, in addition, the government will make continuing contributions for low-income families.