Island Health Partnership: Access RDSP
RDSP Support for Children and Youth around Vancouver Island
Access RDSP is partnering with Island Health Authority to provide personalized support with the Disability Tax Credit (DTC) and Registered Disability Savings Plan (RDSP) for children and youth (ages 19 and under) in the Island Health region, which includes the gulf islands.
If you are in the Island Health region and have a child with disabilities who needs the DTC and/or RDSP, we can provide local support through one-on-one guidance with filling out forms, applying for the DTC, and setting up an RDSP. This program is fully funded and there is no fee to access services.
For help or to ask questions about eligibility, contact us at rdsp@dabc.ca or 1-800-663-1278.
What is the RDSP?
The RDSP is essentially a retirement plan for people with disabilities who have the Disability Tax Credit. It allows you to save money, with significant (up to $90,000) government contributions, to access later in life.
What is the DTC?
The Disability Tax Credit is a status you can get from the Canada Revenue Agency. If you’re paying income tax, it allows you to reclaim some of that tax on a yearly basis. It also qualifies you for programs like the Registered Disability Savings Plan, Child Disability Benefit, and Canada Disability Benefit.
FAQ
Why Start an RDSP Early?
A Registered Disability Savings Plan (RDSP) can accumulate up to $90,000 in government funding. Opening an RDSP in childhood provides more opportunity to access that funding. There’s no downside to an early start.
How can you access $90,000 for your child?
The RDSP collects two kinds of government funds. The first is called the Savings Bond, which gets you $1000/year if your income is less than about $36,000/year. You can collect a maximum of $20,000 in bond money before age 49. The second is the Savings Grant, which is a little more complicated because it requires personal contributions. Those whose income is less than about $100,000/year are eligible to trigger a $3,500/year grant from the government by contributing $1,500/year of their own money. If your income is over about $100,000/year you can still collect $1000 by contributing $1000. The lifetime maximum you can collect from the grant is $70,000 before age 49. After the year in which you turn 49, you are no longer eligible for any bonds or grant money.
Why File Taxes at 16?
Starting in the year your child turns 19, the RDSP will consider their income instead of yours, which may change their entitlement. Because the government always looks two years ahead when determining eligibility, it’s important to start filing your child’s taxes at age 16, even if they have no income.
Although your child may be eligible for more money based on their income rather than yours, it’s still best to open the RDSP as soon as possible; if your goal is to hit the maximum Bond and Grant amounts, even years with partial government contributions are better than nothing. Get started while they’re young!
How an RDSP be accessed before age 60?
The reason you might want to race for that $90,000 is because of the age at which your child can start withdrawing from the RDSP without penalty. The penalty, which is $3 for every $1 withdrawn (taken from government contributions) will always apply to withdrawals that occur within 10 years of the last government contribution. Most people collect the Bond and Grant up until age 49, then begin withdrawals at age 60. However, if you maximize the Bond and Grant early (that’s $20,000 for the Bond and $70,000 for the Grant), the 10-year clock can start early too. Your child might be able to access that money in their 40s or 50s instead of at 60!
What if I do not live in the Island Health Region or am over age 19?
Visit: https://disabilityalliancebc.org/direct-service/help-with-the-rdsp-and-dtc/
If you live in British Columbia and are any age, you are eligible for support from our general Access RDSP program, which provides help with DTC applications and RDSP information.
Contact us for more information at rdsp@dabc.ca or 1-800-663-1278.
DABC Services
Direct Support
Is all this a bit overwhelming? Do you need help getting the Disability Tax Credit (DTC) to make your child eligible for an RDSP? Would you like to talk to someone in person or over the phone? If you are a youth or parent on Vancouver Island and want to know more about how you can take advantage of the RDSP, reach out to Audrey! You can also visit rdsp.com for more information on the DTC and RDSP, and the Access RDSP partnership.
Set up a Mobile Clinic
If you are a community organization who serves youth/children, we are able to provide mobile clinics where we can do several DTC interviews a day in-person anywhere in the Island Health region.
Set up a workshop
We can provide in-person or online workshops geared towards parents, youth, or professionals. Our presentations cover the basics of the DTC and RDSP and how to access these programs with our support.
Contact Us
For more information on how to get in touch with our services or collaborate with us: rdsp@dabc.ca or 1-800-663-1278.
Resources
Find numerous self-help resources on the DTC and RDSP here: https://www.rdsp.com/supports-and-services/self-serve-resources/.
