TAX TIP #4 -New this year -from John McCormack CPA CGA CFP

Registered Disability Savings Plan (RDSP) “new”

Tax tip #4
If you, a family member or a friend is eligible for the disability tax
credit, you can open a Registered Disability Savings Plan. This is a
new tax benefit plan. The 2013 deadline for opening one has
been extended to March 2, 2013. The 2013 RDSP contribution year begins
March 3. These contributions are not deductible. The benefit is that
the money will grow tax-free. When earnings are withdrawn, they will be
taxable by the beneficiary of the disability savings plan. In all
likelihood, they will be taxed at a lower rate.

Income paid out
from your RDSPs does not affect federal income-tested benefits, such as
OAS payments,  child tax benefit and the goods and services tax credit
(GST). Ottawa provides matching grants up to $3,500 a year, plus a
$1,000 bond each year for families with incomes under $37,885. There is
a ceiling for the RDSP contributions. It is called a lifetime
contribution with a limit of $200,000


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