National Bank Direct Brokerage (NBDB) now offers clients the possibility of contributing to a Registered Disability Savings Plan (RDSP).
Launched in 2008 by the federal government in, the plan helps people with severe and prolonged disabilities achieve greater financial security over the long term.
Anyone who qualifies for the disability tax credit (DTC) is eligible for an RDSP. The overall lifetime contribution limit is $200,000 per beneficiary and contributions can be made until the end of the year in which the beneficiary turns 59. Parents and other contributors may want to open an account in the name of a beneficiary with a disability.
In addition to providing tax-deferred growth until payments are made from the plan, an RDSP also gives eligible individuals access to the Canada Disability Savings Grant and Canada Disability Savings Bond.
Investors can choose from a wide range of investment products offered by NBDB for registered accounts. Contributors will not be charged additional costs for RDSPs and the plans will be subject to the NBDB’s preferential annual administration fees which are calculated based on all the accounts held by the client.
NBDB is a wholly owned subsidiary of National Bank of Canada (TSX:NA).