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Barry's
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Devolin Column
July 23, 2009
Disability Savings Plan
Unless you are born with a disability, no one lives their life expecting to end up disabled. Most are caught off guard and unprepared for a life with a disability. In some cases, society makes living with a disability more challenging than the disability itself.
That is why the Government of Canada is committed to helping people with disabilities and their families work toward long-term financial security. We developed the Registered Disability Savings Plan (RDSP), the Canada Disability Savings Grant and the Canada Disability Savings Bond.
Any person under the age of 60 who is eligible for the Disability Tax Credit and is a resident of Canada can open an RDSP at one of several financial organizations across the country.
There is no annual contribution limit for an RDSP and a lifetime contribution limit of $200,000. With permission of the person who opened the RDSP, friends and family are welcome to contribute to help the Plan grow. What’s more, investment income earned in the Plan accumulates tax-free.
To help eligible individuals save even more, the Government will pay a matching grant of up to $3 for every $1 in contributions received by an RDSP—up to $3,500 annually, with a lifetime limit of $70,000.
The Government will also pay a bond of up to $1,000 annually, with a lifetime limit of $20,000, into the RDSPs of low-income and
modest-income Canadians. No individual contributions are necessary to receive the bond; simply open an RDSP.
In addition to the RDSP, Canada’s Economic Action Plan took further action by introducing close to $1.5 billion for housing construction and renovation projects and $40 million to improve accessibility to federal buildings; improving tax benefits; and making
post-secondary education more accessible.
For example, earlier this month I was pleased to join our provincial and municipal representatives to announce $8.2 million for two construction ready projects in Lindsay. The Canadian Mental Health Association and Community Care City of Kawartha Lakes will build 69 units of affordable housing for low-income seniors and persons with disabilities.
With these investments, we are making an important difference in the lives of some of our community’s most vulnerable citizens. If you would like more information on the RDSP, the grant and the bond, including a list of participating financial institutions, please visit the Human Resources and Skills Development Canada Web site at www.disabilitysavings.gc.ca.
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