If you would like easy to understand information on the new Registered Disability Savings Plan please visit www.rdsp.com.
London Drugs and PLAN announce winner of June 15 Registered Disability Savings Plan contest –
Port Coquitlam family to receive $1,500 RDSP
London Drugs Assistant Store Manager Chris Knowles presents Tisharra, Connor, and Kirstin Diamond with a $1,500 contribution to a RDSP with Chair of PLAN’s Board of Directors Susan Whittaker and PLAN’s Executive Director Jack Styan
Excerpt from London Drugs/PLAN Press Release
RICHMOND, BC, August 6, 2009 – London Drugs and Planned Lifetime Advocacy Networks (PLAN) are pleased to announce Tisharra Diamond of Port Coquitlam as the winner of the June 15th Registered Disability Savings Plan (RDSP) contest. Tisharra will receive a $1,500 contribution towards her son’s RDSP. Launched December 2008 as the first of its kind in the world, this tax-deferred savings vehicle will assist families in planning for the long-term financial security of their relatives with disabilities. It is a savings plan similar to a Registered Educational Savings Plan, however designed specifically for people with disabilities in Canada.
“London Drugs is very proud to partner with PLAN on this first-of-its-kind initiative for families with disabilities,” said John Tse, vice president Pharmacy. “At London Drugs we recognize the importance and value of this savings plan and are pleased to be offering two more contest dates that will give families the opportunities to also win a $1,500 RDSP contribution.”
A RDSP allows anyone already eligible for a disability tax credit to invest savings tax-free until withdrawal, up to a lifetime limit of $200,000, and friends and family members can also contribute to a loved one’s RDSP. The federal government has also created the Canada Disability Savings Grant and the Canada Disability Savings Bond as an incentive to set up and contribute to a RDSP.
“We are excited to be partnering with London Drugs on this RDSP contest and distribution of our Safe and Secure: RDSP Edition books,” said PLAN Executive Director Jack Styan. “The contest amount of $1,500 could translate into a deposit of $4,500 to a family member’s RDSP depending on the income level of the family as outlined by the government matching program. We want to encourage everyone with a family member who has a disability to enter the remaining two contests and to begin donating to a family member’s RDSP.”
British Columbians with a disabled family member can visit any London Drugs Pharmacy to obtain the new, B.C.-specific Safe and Secure: RDSP Edition book. The book offers helpful information related to disability benefits, taxation, trusts, Representation Agreements, wills, estate planning and the new Registered Educational Savings Plan. The PLAN RDSP contest sponsored by London Drugs is open to all residents of British Columbia who are eligible to set up a RDSP (for eligibility requirements see www.rdsp.com/how.html). The final two contest draws occur August 15, 2009 and October 15, 2009. Prizes must be accepted as awarded and are non-transferable with no substitutions permitted.
Visit www.plan.ca to sign up for the last two draws. If you have submitted your name for the first draw, you will automatically be entered for the next two. Good luck!
6 comments
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August 9, 2009 at 4:27 pm
Freedom Homes
This is lovely news – congratulations Tisharra.
October 2, 2009 at 2:54 am
Kavi Toussi
I would like to participate to all draws from now.
October 2, 2009 at 4:01 pm
Doug Brodhead
Hi Kavi,
If you click on this link http://www.plan.ca/Resources_SafeSecure.php, and fill out your information you will be included in the draw that is coming up in mid-October.
Regards.
November 4, 2009 at 12:13 am
Oudong Sil
I am over 49 years old.Why I am not eligible fior Grants & Bonds of Endowment150 ?
November 4, 2009 at 5:08 pm
Doug Brodhead
Hi Oudong,
When the federal government created the policy for the RDSP, they included something called the 10 year rule. This rule effectively creates the cut-off at the age of 49 years old, even though you yourself are allowed to contribute up until you turn 60. The 10 year rule is as follows: if you receive any grant and bond from the federal government you must wait ten years after the last grant and bond has been received before taking out payments. If you withdraw early you will be penalized any grant and bond received within the last ten years.
Another provision within the plan is that you must begin to withdraw from the plan at the age of 60. Even if the government were to give grant and bonds until the age of 60, because of this ten year rule and the automatic withdrawals at age 60, you would lose the last ten years of grant and bond. As a result, they simply made the eligibility to receive the grant and bond stop at the end of the year you turn 49.
My understanding around the 10 year rule is that it was put in place to make sure this was a long-term plan (as it was designed for children with severe disabilities), and to avoid tax-slippage.
This is probably one of the most contentious parts of the plan, and something that we will be looking at when the Government does their formal review of the plan. In the meantime, you can always send a letter to the federal government to outline your concerns, as well as speaking with your local MP.
November 25, 2009 at 8:47 pm
lyncinolf
Credit you championing details. It helped me in my task