Which of the following is true for a Registered Disability Savings Plan (RDSP)?
A)Contributions made to the plan are tax deductible.
B)The annual maximum contribution is $17 750.
C)Contributions can be made until the end of the year in which the beneficiary turns 59.
D)All withdrawals made from the RDSP are tax free as long as the beneficiary receives the income.

Question

Quizplus · Accepted Answer

Contributions can be made until the end of the year in which the beneficiary turns 59.

Option A is incorrect because contributions made to an RDSP are not tax deductible.

Option B is incorrect because the annual maximum contribution limit depends on various factors, including the beneficiary's age and the amount of unused grant and bond entitlements.

Option D is incorrect because withdrawals from an RDSP are taxable as income for the beneficiary, although certain amounts may be tax-free depending on the type of payment received.

Which of the Following Is True for a Registered Disability