Originally Published by The TaxLetter Vol. 25, No. 11, November 2007   www.adviceforinvestors.com

ABCs of RDSPs For the disabled, it's a very small start  Eileen Reppenhagen

Coming in 2008 to a financial institution near you — the Registered Disability Savings Plan (RDSP). Introduced last March in the federal budget, the RDSP is modeled on the Registered Education Savings Plan, and is intended as a savings vehicle for parents with severely disabled children. It includes the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB). Anyone eligible for the Disability Tax Credit is eligible for the RDSP. Like an RESP, contributions to an RDSP will not be taxdeductible, although investment income in the plan will grow tax free. Contributions are limited to a lifetime maximum of $200,000, and there is no annual limit. Tax will be paid on investment income withdrawn from the plan by the beneficiary. Also, there’s no restriction on who can contribute to the plan, so it’s open for anyone from relatives to charitable organizations . . . Signup for The TaxLetter and read Eileen's full article every month

Eileen Reppenhagen, CGA, ACG, Certified QuickBooks ProAdvisor writes and speaks about accounting and tax.  She is a regular contributor to Canadian MoneySaver, The TaxLetter and Intuit’s award winning online publications for accountants and QuickBooks ProAdvisors, ProConnection Newsletter and Advisor Advantage.   All articles are copyright protected.  Most articles are not available for re-print unless you obtain permission from third parties.  Please respect copyright. For more information or permission to re-print please contact  eileen@taxdetective.ca If you obtain permisison to re-print an article, include this tagline:   "Eileen Reppenhagen, CGA is a Certified QuickBooks ProAdvisor and speaks and writes about accounting and tax.  Contact her at www.taxdetective.ca".