Registered Disability Savings Plan (RDSP)

  • |
  • 01 mins 14 secs
Frank DiPietro, assistant VP of tax and estate planning at Mackenzie Investments, shares the prerequisites for setting up an RDSP and pre-budget rules.


MASTERCLASS: 2019 Federal Budget

For further information please contact:

Catherine Reale
+1 416 523 7694
[email protected]

The budget proposed two additional modifications in an attempt to make it more accessible and easier to use for families who are looking to utilize this plan. The first one has to do with eligibility. One of the prerequisites for setting up an RDSP is that the individual needs to qualify for the Federal Disability Tax Credit, or the DTC. Once an individual goes through the process of setting up an RDSP, they're DTC eligible. Circumstances may change for that individual to the point where perhaps they are no longer eligible for the DTC in the future. Well, under pre-budget rules, what would happen is that individual would be forced to collapse their RDSP and, more importantly, would be forced to repay all of those government grants and bonds back to the government.

Mackenzie Investments was founded in 1967 and is a leading investment management firm providing investment advisory and related services, as well as a member of the IGM Financial Inc. (TSX: IGM) group of companies.