Province Helps Families Save More For Relatives With Disabilities
The province is making it easier for families of people with disabilities to save for their loved one's future by allowing them to use Registered Disability Savings Plans while continuing to receive income assistance.
Similar to a Registered Education Savings Plan, the Registered Disability Savings Plan allows families and their children with disabilities to save money, tax-free, until it's needed.
"Many people worry about what will happen when they're no longer here to provide care for a family member who is disabled," said Community Services Minister Chris d'Entremont. "This will give families peace of mind by allowing them to plan a more financially secure future for their relative."
Community Services will fully exempt the Registered Disability Savings Plan contributions when calculating clients' eligibility for income assistance. Clients will also be able to withdraw funds from the plan without affecting their income assistance payments.
There are no restrictions on who may contribute to a Registered Disability Savings Plan and no annual contribution limit. There is a lifetime maximum of $200,000 per individual fund. The federal government recently announced that the 2008 contribution year has been extended to March 2, 2009.