Mackenzie Financial Corp. announced Friday that it now offers Registered Disability Savings Plans to eligible clients.

Introduced by the federal government in 2007, the RDSP is designed to help families and individuals save for the long-term financial security of Canadians with disabilities.

A vital lifeline for the disabled

“We are pleased to be increasing accessibility to RDSPs by making the product available through independent financial advisors,” says Carol Bezaire, vice president, tax and estate planning at Mackenzie Investments.

To help meet beneficiaries’ needs and goals, Mackenzie RDSP clients have access to a selection of Mackenzie mutual funds covering a variety of asset classes, geographical areas and investment styles.

Canadian residents under age 60 who are qualified for the Disability Tax Credit may open an RDSP. Contributions are not tax deductible, but grow on a tax-deferred basis until money is withdrawn. The lifetime contribution is $200,000 per beneficiary, with no annual contribution limit.

To encourage savings, the government provides a matching Canada Disability Savings Grant of up to $3,500 a year on contributions, depending on the net income of the beneficiary or beneficiary’s family. The government also pays a Canada Disability Bond of up to $1,000 a year for 20 years into the RDSPs of low and modest income Canadian beneficiaries. To date, the Government has contributed more than $290 million to Canadian RDSPs.