RDSPs : A New savings Tax Break For Those Who Need It Most

Registered Disability Savings Plans

Canadians with disabilities, or who have children with disabilities, have a new way  to save money for the future. It's called the Registered Disability Savings Plan (RDSP), and it allows Canadians living with prolonged physical or mental impairments to make tax-deferred contributions to RRSP-like savings plans, up to a lifetime maximum of $200,000.

All Canadians under 60 who qualify for the Disability Tax Credit are eligible to set up RDSPs. Parents or guardians can also establish plans for children in their care. Contributions aren't taxed until withdrawal and yearly contributions are unlimited. Ottawa will also match portions of contributions on an income-dependent basis, up to $3,500 a year to a lifetime maximum of $70,000.