Flaherty announces tax-free savings plan for families of disabled people

TheGlobeandMail.com – Report on Business – Flaherty announces tax-free savings plan for families of disabled people
December 23, 2008. The Canadian Press

TORONTO — The federal government will allow families of people with a disability to set up tax-free savings under a new registered disability savings plan.

Finance Minister Jim Flaherty says the plan, originally proposed in the March 2007 budget, will allow parents and siblings of disabled people to accumulate money on a tax sheltered basis.

Mr. Flaherty estimates about 280,000 Canadians would be eligible to open RDSPs.

Ottawa will provide matching grants of up to $3,500 per year for the plans, which will have a lifetime limit of $200,000.

Speaking in Toronto this morning, Flaherty said the deadline to set up and contribute to the plans for 2008 will be extended to March 2 next year.

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