Other Gov Programs

Registered Disability Savings Plan (RDSP)

This is a plan that is intended to help parents and others save for the long-term financial security of a person who is eligible for the Disability Tax Credit Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59 years of age. Contributions that are withdrawn are not to be included as income for the beneficiary when paid out of a RDSP. However, the Canada disability savings grant, Canada disability savings bond and investment income earned in the plan will be included in the beneficiary’s income for tax purposes when paid out of the RDSP.

The Government of Canada will pay matching grants of 300, 200, or 100 percent, depending on the beneficiary’s family income and the amount contributed. An RDSP can receive a maximum of $3,500 in matching Grants in one year, and up to $70,000 over the beneficiary’s lifetime. A grant can be paid into an RDSP on contributions made to the beneficiary’s RDSP by December 31 of the year the beneficiary turns 49 years old.

You may seek more advice from a qualified financial advisor.

For more details, please contact Service Canada or visit their website at: Registered Disability Savings Plan (RDSP)

Canada Disability Savings Bond

Through the Canada Disability Savings Bond, the Government deposits money into the RDSPs of low-income and modest-income Canadians. If you qualify for the bond, you could receive up to $1,000 a year from the Government, with a limit of $20,000 over your lifetime. Contributions do not need to be made to the RDSP in order to receive the bond.

Home Buyer’s Plan

This is a program that allows you to withdraw up to $25,000 without paying any tax from your regular RRSP to buy or build a qualifying home for yourself or a related person with a disability. There are a number of conditions attached, among them:

  • meeting the qualifications that the government defines as a first-time home buyer,
  • time period to buy a home after the withdrawal, and
  • Repayment schedule: You have up to 15 years to repay, making a minimum payment of at least 1/15 of the original amount each year.

You may seek more advice from a qualified financial advisor.

For more details, please contact Canada Revenue Agency or visit their website at: Home Buyer’s Plan

Life Long Learning Program

This program allows you to withdraw amounts from your RRSP’s without paying tax to finance training or education for you or your spouse or common-law partner. (This program does not apply to the children.)

There are a number of conditions that need to be met to qualify, among them:

  • full-time studies (or part-time if disabled),
  • qualifying education program at a designated educational institution,
  • you can withdraw up to $20,000,
  • repayment to your RRSP over a maximum 10 year period, and at least 1/10 per year.

You may seek more details from a qualified financial advisor.

For more details, please contact Canada Revenue Agency or visit their website at:Life Long Learning Program

Registered Education Savings Plan

The government of Canada provides an incentive to save for a child’s post-secondary education by paying a grant based on the amount contributed to an RESP for the child. The basic grant is 20% to an eligible RESP to a maximum of $500 per year, and a lifetime limit of $7,200 for each child. The regulations were amended recently to allow additional grants if the family meets certain income qualifications.

Contributions do not qualify for tax refunds, but any growth is sheltered from income taxes. Grants are deposited directly to the savings vehicle held with your financial institution which may be a bank, mutual fund company, broker, insurance company, etc. When the child starts to attend post secondary education and begins to make withdrawals, there will then be income taxes paid on the growth in the portfolio. Since there are many rules governing this program, consultinga qualified financial advisor is recommended.

You may seek more details from a qualified financial advisor.

For more details, please contact Human Resources and Skills Development Canada or visit their website at:Registered Education Savings Plan.