I'm not familiar with the RDSP, but from what I briefly read online, putting money into the RDSP is a no brainer. If you have the ability to do so, you should definitely do it. It seems that the amount of benefits are based on how much family income you make. (https://www.rdsp.com/about/what-is-it/). I'm not sure how old your wife is, but her age plays a roll in the RDSP. If she's older than 50, there might be some mild penalties if she starts to withdraw at age 60.mathishard wrote: ↑Feb 9th, 2019 12:39 pmSo we just found out that she was approved for the disability tax credit, which means we can open up an RDSP for her. The plan now is to draw down the RRSP by around 10k a year and move it over to the RDSP, so she can get the bonds from the government and the tax free growth. If I understand correctly, the RDSP withdrawals will only be taxed on the portion that is growth from her deposits, and that income will not be counted against OAS. Does this plan make sense?
The benefit should not affect any other government programs like OAS or anything else, it seems to be independent.
I didn't immediately see information about withdrawals and how they are taxed, regardless the RDSP is a better vehicle than a RRSP because of the govt. grants/bonds.
It appears your family income is too high, if it's above $91,831, then you don't really get a lot of the benefit. Still worthwhile though. You might have to play around with your salary numbers and see if it's worth it to put more money into the RDSP right away depending on how much "bonus" the government gives you. if you are getting 3-1 on your money, then I would put MORE into the RDSP right away.