A registered disability savings plan (RDSP) in BC is a long-term savings program designed to help people with disabilities and their families save for the future while accessing government grants and tax benefits.
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A registered disability savings plan (RDSP) in BC allows individuals with disabilities to save money tax-free for the long term, with the government providing grants and bonds to help increase savings. Withdrawals are taxed when taken out.
Learn About
- Understand that people who are eligible for the Disability Tax Credit (DTC) and are under the age of 60 can apply for a Registered Disability Savings Plan (RDSP). Learn more from Disability Alliance BC.
- Understand that to apply for the DTC, a qualified health care professional must certify that a person has a severe and prolonged impairment that meets the CRA’s eligibility criteria. Review eligibility to see the list of qualified health care professionals.
- Learn how to apply for DTC from the Government of Canada.
How to Apply
- To open an RDSP, you need to contact a financial institution that offers RDSPs. Register the RDSP with the CRA.
- To register the RDSP, you need to fill out an RDSP application form and ensure that the names, dates of birth, and social insurance numbers on the application form match the information in the Social Insurance Registry.
- You also need to confirm that the CRA has approved Form T2201 for the beneficiary. Learn to how to open an RDSP for yourself or a loved one from the Government of Canada.
- Know that you do not need a My Service Canada account (as with other Canadian benefits) to apply for the Disability Tax Credit.
Explore Other Benefits
- Understand that Wayfinder is an online tool help people with disabilities and their families navigate various federal and provincial programs and services. It is specifically aimed at helping individuals with disabilities find the support they need in areas like health care, financial assistance, and community services.
- Explore the Benefits Finder from the Government of Canada to learn more about publicly funded benefits and those you might be eligible to receive. Note that compared to Wayfinder, the Benefits Finder is broader and not limited to individuals with disabilities – it helps all Canadians find benefits they might be eligible for based on their personal circumstances.
- Know that having a chronic health condition, dependent on your physical and mental health capacity, may also qualify you for disability benefits such as the Disability Tax Credit and Canadian Pension Plan-Disability.
- Check out the government of Canada Retirement Hub to learn about how to plan for, apply, and manage your public benefits.
- Use the Canadian Retirement Income Calculator to learn about some of your potential retirement income by combining your expected OAS pension and CPP Disability pension.
- Work with an accountant to ensure your income tax is filed every year. Know that an income tax assessment is required for most government benefits and services.
If you have a chronic health condition or disability, explore all available pensions and benefits early to support your financial and lifestyle plans while managing your health. Mywell Health lists potential benefits under My Financial Plan, with more details in the resource kit.
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Categories: My Financial Plan, Senior
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