Dec. 10, 2008
FREDERICTON (CNB) - Families of persons with disabilities will be able to take advantage of new registered disability savings plans (RDSPs) while continuing to receive supports, Social Development Minister Mary Schryer announced today.
"RDSPs will allow families to invest in the long-term financial needs of their children with disabilities," Schryer said. "This will make it easier for families to save for their children who have disabilities, while also ensuring that these savings do not affect their child's eligibility for disability supports."
Similar in structure to registered education savings plans, RDSPs enable friends and family members to save money tax-free for people with disabilities so that they can better plan for the future. The new plans are expected to be available at financial institutions in 2009.
Social Development will fully exempt RDSP assets when calculating clients' eligibility for income-tested programs such as social assistance and social housing benefits. Clients will be eligible to receive up to $800 a month from an RDSP, in addition to their social assistance.
Social assistance recipients may also be eligible for the working income tax benefit, which will be fully exempted. The working income tax benefit is an annual refundable tax credit of up to $500 for individuals, and up to $1,000 for families. In addition, those with a disability may be eligible for a further $250 per year.
More information about the federal RDSP and the working income tax benefit may be found online. Those wishing to establish an RDSP must qualify for Canada's disability tax credit.
MEDIA CONTACT: Sonya Gilks, communications, Department of Social Development, 506-444-3730.