At 49 years old, I found out about the government’s RDSP program. I applied and was approved back to 45th birthday. I contributed $1,000 to my plan and received a $1,000 contribution from the government.
This is where it gets complicated. The rules say that the government will contribute to your plan until you turn 49 but you can contribute to your plan until you turn 59 (interest is non taxable). The RDSP’s info service (call centre) tells me that no contribution will be made by the government for money put into my plan after I turned 49 because I have to start withdrawing money from the plan at age 60.
The grey area, for me, is that for tax purposes the disability credit retroactively applies from 45 to 49 why would that not be the same for RDSP. With the new proportional repayment rule, introduce in 2013, my understanding is that if I made a contribution in my back eligibility years (45-49) and got the government’s contribution, at 55, I would have to return $1 to the government for every $1 withdrawn between 60 to 65 but after the 10 year from last government’s contribution, I would not have to return anything on my withdrawal (from 65 to 83 years old).
Am I being missed informed and can someone help me understand that grey area of the RDSP rules. Tks