Finandicap

Frequently asked questions

Most frequent questions
  • Can I open a RDSP even if I have no money to invest in it?

    Absolutely. It is possible that you are eligible to the Canada Disability Savings Bond if you have a low income. Those bonds will be paid into your RDSP.

  • How much do Finandicap’s services cost?

    We will take the time to discuss your situation for free in a first meeting.

    If you choose to be our client, our consultations are free of direct charge as we receive commissions from the financial institutions we represent.

  • What is a RDSP?

    The Registered Disability Saving Plan (RDSP) allows disabled people and their close ones to save to ensure a good quality of life over the long term.

    Indeed, to encourage the Canadians to save, the Canada Disability Saving Grant (CDSG) multiplies the contribution made for the benefit of disabled individuals under 49 years of age up $3,500 for a maximum of $70,000 over the lifetime.

    In addition, the Canada Disability Savings Bond is paid to a person with low income. This annual grant of $1,000 for a maximum of $20,000 over the lifetime is available even if no contribution is made into the RDSP!

    Moreover, did you know that nearly 750,000 Canadians are eligible to the RDSP, but less than one in eight is aware of this program?

  • Will my social solidarity or old-age pension benefits be reduced if I choose to invest in a RDSP?

    No. When the time of the withdrawals comes, the Finandicap team will help you establish a tailored solution in order not to affect your benefits.

  • How to open a RDSP account?

    With a Finandicap advisor, you will discover many options available to you!

    We work in concert with financial institutions to accompany the disabled persons and their close ones in opening and managing the RDSP.

    We serve customers throughout the province of Quebec and Eastern Ontario.

All questions
  • Why didn’t I hear about this earlier?

    The RDSP exists since 2008 and is still largely unknown. Please do not hesitate to visit the government website to validate the details.

    Finandicap chose to contribute as much as possible to raise awareness on the RDSP, so a greater number of disabled people can benefit from the grants and bonds.

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  • Can I open a RDSP even if I have no money to invest in it?

    Absolutely. It is possible that you are eligible to the Canada Disability Savings Bond if you have a low income. Those bonds will be paid into your RDSP.

  • What is the difference between a RESP and a RDSP?

    The Registered Disability Savings Plan (RDSP) is a long term plan to help disabled persons and their close ones to ensure their financial security and save over the long term.

    The Registered Education Savings Plan (RESP) is a medium term plan allowing to help pay post-secondary education costs.

    In both cases, the plans allow to save and invest sheltered from taxes payable with the help of the government.

  • What are the benefits to open an RDSP between the age of 50 and 59?

    When the disabled person turns 50, he/she can not receive grants or bonds anymore. However, we remind you that the RDSP is a way to save sheltered from cuts to benefits received from social programs. Therefore, opening a RDSP account is a good way to inherit before the age of 60 for a disabled person.

  • Can I receive tax credits or benefits for past grants?

    Laws allow to go back 10 years to recover money you are entitled to and you did not receive. It’s time to wake up all this money which has been dormant and is yours!

  • Am I eligible for other grants?

    There are more than 40 grants and tax credits for which disabled persons can be eligible. It’s possible that you are eligible to some of those.

  • Will my social solidarity or old-age pension benefits be reduced if I choose to invest in a RDSP?

    No. When the time of the withdrawals comes, the Finandicap team will help you establish a tailored solution in order not to affect your benefits.

  • Will I be taxed upon withdrawal?

    The money you and your close ones contribute into the RDSP is not taxable when withdrawn. However, the investment income, the grants and the bonds are taxable in the event of a withdrawal.

    Nevertheless, in most cases, tax credits of the disabled beneficiary will considerably reduce taxes payable upon withdrawal.​

  • How do I reduce the impact of penalties of the RDSP

    A new way to avoid penalties, in the event of the passing of one of the parents, would be to subscribe to a life insurance complementing the RDSP. We can help you with this.

  • Can I withdraw money before my 60th birthday?

    To avoid penalties for early withdrawals, we have to wait 10 years after the payment of the last grant. In most cases, when a person opens a RDSP to the benefit of a disabled person under 30 years old, it is highly probable that it will be possible to withdraw money before the age of 60, without penalty.

    Moreover, for those who wish to withdraw without waiting the 10 years period, a new disposition allows for small withdrawals for those who accept a reduced penalty. However, the penalty can represent up to 300% of the amount withdrawn.

  • How is family income calculated for grants purposes?

    When the beneficiary is minor, the income from the two parents is taken into account. For single-parent families, the revenue of the parent with custody is considered.

    From the year when the beneficiary turns 19 years old, the parents’ revenue will not count. For the grant calculations, the government only considers the beneficiary’s revenue and from his or her spouse, if applicable.

  • Is it possible to leave an estate in a RDSP account?

    The RDSP is an economical and efficient way to pass an estate:

    • Amounts held in a RDSP do not have any effect on benefits received by low income persons;
    • The estate will save tax on the RRSP disposal, up to the contribution ceiling of the RDSP if those RRSPs are transferred directly as a legacy to the RDSP. The beneficiary must be the child or the grand-child of the legatee and financially dependent from him/her.

    Those estate planning elements can be really advantageous and even essential if the disabled heir benefits from social solidarity.

  • Who can contribute to the RDSP?

    Anyone can contribute to the RDSP account with the permission of the plan owner. It’s important to remember that there is no tax advantage for the contributor. The advantage is instead in the grant that will be paid to the benefit of the disabled person.

  • How much do Finandicap’s services cost?

    We will take the time to discuss your situation for free in a first meeting.

    If you choose to be our client, our consultations are free of direct charge as we receive commissions from the financial institutions we represent.

  • How to open a RDSP account?

    With a Finandicap advisor, you will discover many options available to you!

    We work in concert with financial institutions to accompany the disabled persons and their close ones in opening and managing the RDSP.

    We serve customers throughout the province of Quebec and Eastern Ontario.

  • Am I eligible/Is my child eligible?

    To be eligible, you need to meet the following criteria:

    • The beneficiary must be a Canadian resident under the age of 60 eligible to the Federal Disability Tax Credit;
    • The beneficiary must be under 49 to benefit from the grants;
    • The beneficiary must have a valid social insurance number.
  • What is a RDSP?

    The Registered Disability Saving Plan (RDSP) allows disabled people and their close ones to save to ensure a good quality of life over the long term.

    Indeed, to encourage the Canadians to save, the Canada Disability Saving Grant (CDSG) multiplies the contribution made for the benefit of disabled individuals under 49 years of age up $3,500 for a maximum of $70,000 over the lifetime.

    In addition, the Canada Disability Savings Bond is paid to a person with low income. This annual grant of $1,000 for a maximum of $20,000 over the lifetime is available even if no contribution is made into the RDSP!

    Moreover, did you know that nearly 750,000 Canadians are eligible to the RDSP, but less than one in eight is aware of this program?

  • Is it possible to transfer my RDSP with Finandicap if I opened it somewhere else?

    Yes. Several persons that already had a RDSP with another financial institution chose to trust a Finandicap advisor to benefit from the tailored advice from our team. The transfer is simple and at no cost.

    To discuss it, call us at 514-504-REEI or at 1-877 907-7377

  • Why choose Finandicap ?

    Finandicap is the RDSP specialist in the province of Quebec. Our team is dedicated to the disabled people and understands the challenges you face regardless of your disability.

    With fees comparable to those charged by the other firms to manage your RDSP, you will have access to professional advisors that understand the particularities you live and to a team aware of most of the measures to help disabled individuals.

    We are recognized by our financial products suppliers such as Bank of Montreal and Mackenzie Investments, as well as by the organizations that help disabled people.