What is a Registered Disabilty Savings Plan?

An RDSP is a special program that helps Canadians with disabilities save for long term financial requirements.

Designed for Canadians with disabilities and their families

The government helps you save
Registered Disability Savings Plan

Your Registered Disability Savings Plan (RDSP) is eligible to receive government assistance through two financial programs, which can really help your savings grow faster.

What is an RDSP?

Explore options available for Canadians with Disabilities

A Registered Disability Savings Plan (RDSP) is a government registered savings plan that helps Canadians with disabilities and their families save for long-term financial needs1, such as future medical and living costs, by growing their savings on a tax-deferred basis, similar to an RSP.

You can contribute as much or as little as you want in any given year, and you can continue to make contributions up until the end of the year in which the beneficiary turns 59.

Anyone can contribute to the RDSP provided they have written permission to do so, and there are no restrictions on what the money can be used for once it is withdrawn, as long as it’s used to help the beneficiary.

While RDSP contributions are not tax-deductible, income earned grows on a tax-deferred basis. When withdrawn, the funds are taxed as income. You may be eligible for government assistance in the form of grants and bonds.

Government assistance
  • To help your savings grow faster, the government provides grants and bonds.
Tax-deferred growth
  • Income earned from the RDSP grows on a tax-deferred basis until funds are withdrawn, after which they are taxed as income.
Purchase
No annual maximum
  • Contributions can be up to a lifetime limit of $200,000 and can be made up until the end of the beneficiary’s 59th year.
Have Any Questions?

FAQ's

12 Questions To Ask

Registered Disability Savings Plans (RDSPs) help Canadians with disabilities and their families save toward long-term financial security.

To be eligible to receive the Disability Tax Credit (DTC) you must be a Canadian resident under the age of 60 at the time contributions are made and have a valid Social Insurance Number (SIN).

A legal parent, guardian, tutor or curator of the beneficiary; an individual who is legally authorized to act on behalf of the beneficiary; a public department, agency or organization that is legally authorized to act on behalf of the beneficiary.

A contributor can be the plan holder, as well as friends and family who have the written permission of the plan holder.

A wide range of mutual and segregated funds.

An RDSP is eligible for the Canada Disability Savings Grant (CDSG). Depending on your family’s net income and the amount contributed, there are benefits from matching grants of 100%, 200% or 300% — up to a lifetime limit of $70,000 per RDSP beneficiary (as shown in the chart below). Grants will be paid into an RDSP up to the end of the year in which the beneficiary turns 49.

The RDSP may also be eligible for the Canada Disability Savings Bond (CDSB) — which pays up to $1,000 per year — whether or not RDSP contributions are made. Bonds will be paid into an RDSP up to the end of the year in which the beneficiary turns 49, and up to a lifetime limit of $20,000.

An RDSP withdrawal cannot be paid if it causes the value of the RDSP to fall below the total amount of grants and bonds that have been paid into the plan within the last 10-year period less any amount of grants and bonds paid in that period that has been repaid to the government.

While withdrawals from the plan can be made at any time for the benefit of the beneficiary, it is very important to note that any grant or bond received within 10 years prior to a payment must be repaid, as the plan is intended to encourage long-term savings .

Contributions are made with after-tax dollars and are not tax-deductible. As well — Contributions can be up to a lifetime limit of $200,000. Deposits and contributions can be made up until the end of the year the beneficiary turns 59.

The maximum transfer amount is $200,000; this amount is reduced by all contributions and rollover transfers that have previously been made to any RDSP.

Withdrawals is known as Disability Assistance Payments (DAPs) and can be paid to the beneficiary any time after the RDSP is established.

Amounts paid include a blend of taxable and non-taxable amounts. The CDSG, CDSB and income components are fully taxable to the beneficiary, while the contribution component is not taxed.