Specified Disability Savings Plan – SDSP – How Does it Work ?
The specified disability savings plan SDSP is a way for holders of an RDSP with a shorter life expectancy to get access to funds in the plan.
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Registered Disability Savings Plan
The RDSP is the Registered Disability Savings Plan, a Canadian Government program to help disabled individuals save for their future. Depending on the disability and income level of the disabled person (or their guardians/parents) the Government will also add allowances and bursaries to the account yearly, up to a lifetime maximum.
The RDSP is a key tool for parents of children with disabilities save for their loved one’s future. Once the child’s disability has been recognized by the CRA, an RDSP can be set up to start saving for the child’s future. The government’s additions will depend on the income level of the parents, the lower the income the more allowances and bursaries are added to the savings account.
When to Put Money in RRSP
When should I put money in my RRSP? A good question to ask, and here is a simple heuristic to help you figure that out. Remember that if you have an RESP or RDSP the waterfall changes or has extra steps.
RDSP : Quick Points
While I am not an expert about RDSPs I have learned a lot about it by setting one up and tending one for my son who is on the spectrum. It is a hard program to understand, but important for disabled folks, none the less.
More RDSP and DTC Talk
More clarifications on my part about the RDSP and DTC and how they work together. The program is slowly being clarified, and refined by the Government, but the latest changes do seem to make life simpler for the beneficiaries.
RDSP Statement of Grant Entitlement 2020
A yearly statement of grant entitlement is sent each year to RDSP holders to tell them how much the government will help out each year.
