The Registered Disabled Savings Plan (RDSP) is a great way for disadvantaged Canadian individuals to accumulate wealth on a tax-deferred basis. It facilitates growth through a combination of investments and contributions to your account. But not everyone can get it – eligibility depends on citizenship, age, and qualification for government-sponsored programs.
How Do I Qualify For An RDSP?
In order to qualify, you have to:
- Be under 60 years old
- Live in Canada with proof of citizenship
- Be eligible for a Disability Tax Credit (DTC)
- Have a permanent or temporary Social Insurance Number (SIN)
- Have filed income taxes for the past two years
How Can I Be Eligible For A DTC?
DTCs are helpful in reducing the tax payments you owe, but you’re only able to get a DTC if your condition is severe enough, as determined by a healthcare professional.
Your mental or physical disability must have persisted or is expected to last at least one year. Blindness, need for extensive treatments related to your condition, or limitations in your ability to perform daily activities can make you eligible.
When you apply for this, you’ll need to download a form for you and your healthcare provider to fill out. Once the form is completed, you will need to send it to the Canada Revenue Agency (CRA). You should receive a response within six to eight weeks.
How Can I Get A Social Insurance Number?
If you’re over the age of 12, you can apply for this on your own. However, parents can apply on behalf of someone under the age of majority, which is either 18 or 19 depending on the province.
This process requires gathering necessary materials and filling out a form. You will need your birth certificate or another document proving your citizenship, such as the Certificate of Canadian Citizenship or permanent residence card. Once you’ve filled out the application and provided the required materials, you will need to send it to the Service Canada office.
Once you get your SIN, it is strongly encouraged that you keep the document stored in a safe location.
Now That I Have A DTC And SIN, What Do I Need To Do Next?
Once you’ve obtained these, all you need to do is go to your local financial institution to open your RDSP account. From this point, you will be able to make contributions and decide on how you’d like to invest.
We Can Get You The RDSP You Need
At FiduSure Financial, you are ahead of the game when it comes to your financial future. We offer our years of expertise to your benefit, and with our help, we can get you an RDSP so you’ll be able to build your wealth without being limited by your situation. Call us today at (647) 567 4702.