While looking for government programs here in Canada for people with disabilities, I happened upon the Registered Disability Savings Plan. It looked great. The government would match from $1000 to $3000 per year for money put into these accounts. There was more money available for low income households as well. We thought this would be a great way to put some money aside for their future needs

I had an appointment with the bank today to find out some more details about the plans. I understood the basics about contributing to the plan, but I was more interested in taking money out. If at some point our boys' needs grow beyond what we can provide at home, we want to be prepared for that financially and this seemed like the perfect plan for that. We could use the disability payments Hayden gets now and start putting them into the RDSP.

Unfortunately, as its currently setup, the RDSP is not a good option for boys with DMD. Until they are 28, there is no way to take money out of the account, and if money is removed before the age of 60, the government portion is not available. While we hope for things to change, this just isn't something worthwhile for out boys.

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Comment by Andrew Kerr on March 9, 2011 at 9:29am

Hi Andrea,

Yeah, there are some pretty severe restrictions on it.  I can understand to some degree, as this is meant as a retirement package, but considering there could be some significant expenses later on that aren't covered, I'd like to be able to prepare for them now.

Comment by Andrea Cleary on March 9, 2011 at 6:46am

Andrew,

thanks for this warning. We just moved to a more accessible house in Nov., and the bank lady had talked to us about an RDSP and had given me the form but I had not got into the details yet. Too bad, it sounded like a good thing.

Andrea in Montreal

Comment by Andrew Kerr on August 25, 2010 at 12:37pm
Thanks for your comments, especially that link. I've posted there to try and clarify the situation, and I'll certainly post something here if/when I hear back.
Comment by Evan's Mom on August 24, 2010 at 8:15pm
It's not really clear on the Canada Revenue Agency website, but I think there is something about "specified year" that may allow you to take the money out with a doctor's letter, but that you have to pay back the last ten years of gov't contributions. So you need to at least contribute for eleven years to get anything from the gov't besides the tax deferral on income earned by the RDSP. Also check out this website for more helpful info.
Comment by Jennifer on August 24, 2010 at 2:45pm
We set one up for our son three years ago. When we set it up, we were told that had to wait ten years after our last contribution before taking money out in order to keep the government funds. No one at the bank said anything about not being able to withdraw money until the age of 28. Hopefully they were not simply uninformed.

Jennifer
Comment by Andrew Kerr on August 23, 2010 at 4:06pm
Just as a note, I plan to write a letter and send it both to our local MP and Hon. Keith Ashfield, Minster of National Revenue.

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