|
Newsletters
>
What's New this Spring?
March 24, 2026
What’s New this Spring?
Eileen
Reppenhagen
The Disability Savings Plan will
be modeled on the
Registered Education Savings Plan
model. This is in part
because that model already
exists and would be easy to
implement.
Why
would that matter? Financial institutions who
would
administer the program would just have to
change the name
on all of their forms and tweak the
information a bit in
order to get the
administration underway.
That’s a good
thing because when their target market for
this new
plan is about 500,000 people, actually it could
be
as high as almost 800,000 families because there
has been
significant uptake on the Disability Tax
Credit in the past
two years. As a percentage of
the population of Canada,
there should be an
incentive making it easy for financial
institutions
to adopt the plan and to make it available
to
families.
The RESP has a page on the
CRA website with information
about how RESP’s work.
I know that a lot of parents are
concerned about
withdrawals from RESP’s when the child may
not be
able to utilize these funds. This is where
you
would go to look at the options and
consequences of
withdrawals.
The
Disability Savings Plan Proposal (see the link on
my
home page) was released in December 2006. It is
82 pages
that might actually be worth reading
because it explains
how the system would work and
what is blocking it from
adoption. The provinces
and territories have been asked to
rescind some of
their power to reduce disability benefits
in order
to allow for this plan to proceed. It will
be
interesting to see how the provinces and
territories
respond to this challenge. It is about
time someone called
the provinces and territories
on their treatment of social
assistance recipients
who have a disability.
The Federal Budget
March 19th 2007 (see the link on my
home page)
follows up on the proposal and places it in
the
budget, again with the caveat that the
provinces and
territories must be in agreement that
they will not claw
back benefits as a result of
payments from this Savings
Plan. When you link to
the budget, go to the Quick Links
tab and scroll
down to D for Disability to find the
budget
information relating to this proposal.
While you are there, look just below and just
above this
information to see two other disability
benefits that are
new this spring. Note just below
that information there is
a new Enabling
Accessibility Fund and just above the
Disability
Savings Plan information there is a new
Working
Income Tax Benefit has a Disability
Supplement to encourage
those with a disability to
find work and to reduce their
tax burden to help
them over the ‘Welfare Wall’.
Eileen
Reppenhagen, CGA, TaxDetective®, writes and
speaks
about accounting and tax. She is a Certified
Quickbooks
ProAdvisor and holds the Toastmasters
Advanced Communicator
Gold designation.
www.taxdetective.ca
http://www.taxdetective.ca
Disclaimer:
Eileen Reppenhagen CGA does
not research or endorse any
product or service appearing in ads
posted on this site.
Please
do NOT rely on or use the
information on this website as a
basis for a course of action without
obtaining appropriate professional
advice
.
Disclaimer: All
Apple®, Windows Mobile®, and
Android® trademarks remain
the property of their
respective holders, and are
used only to describe the
products being provided by
The App Code. Any usage of
the above-mentioned marks
anywhere on The App Code
website in no way indicates
any relationship,
endorsement, or affiliation
with the holders of said
trademarks.
All Intuit®, QuickBooks®
Software,Quicken® Software and Profile®
Software trademarks remain the property
of their respective holders, and are
used only to describe the products
discussed on this website.. Any usage of
the above-mentioned marks anywhere in
this website in no way indicates any
relationship, endorsement, or
affiliation with the holders of said
trademarks other than specifically
stated, for example, Certified
QuickBooks ProAdvisor.
|
|
|
