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RDSP

A Registered Disability Savings Plan

A long-term savings plan designed to help individuals with disabilities. The government contributes up to $3,500 per year in grants and $1,000 per year in bonds, depending on income and contributions. Investments grow tax-deferred, allowing savings to build over time.

Eligibility

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Have qualified for the Disability Tax Credit (DTC)
Canadian Resident
Grants and Bonds are available until December 31 of the year you turn 49.

Contributions

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RDSP contributions are non-tax-deductible deposits that can be made by, or on behalf of, the beneficiary up to the end of the year the beneficiary turns 59.

The RDSP contributions is subject to a lifetime limit of $200,000.

Withdrawals

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RDSP payments can be requested at any time, for any purpose.

You can receive RDSP payments either by:

Disability Assistance Payment (DAP) - a lump sum payment that may be requested at any age.

Lifetime Disability Assistance Payment (LDAP) - regularly scheduled payments that once started must continue for life. These payments must begin by the end of year the beneficiary turns 60 but can be requested sooner.

Canada Disability Savings Bond (CDSB)

The CDSB helps low - modest income families save for a person with a disability, with no personal contributions required.

The government contributes up to $1,000 per year, to a lifetime maximum of $20,000.
Eligibility for full or partial bond amounts depends on family income.
To qualify, the individual must be a Canadian resident, have a SIN number, be eligible for the Disability Tax Credit, and meet income requirements.

The CDSB offers a simple and effective way to grow RDSP savings, especially for families with limited financial resources.

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Canada Disability Savings Grant (CDSG)

The CDSG is a government program that matches contributions made to a Registered Disability Savings Plan (RDSP), based on the beneficiary's net family income.

You can receive a matching grant of up to 300% based on family income and contribution.
Receive up to $3,500 per year, with a lifetime maximum of $70,000.
Must be a Canadian resident, have a SIN number, and quality for the Disability Tax Credit (DTC)

The CDSG is an effective way to build long-term savings for individuals with disabilities.

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The Registered Disability Savings Plan (RDSP) is government regulated program designed to enhance the long-term financial security of people with disabilities and to provide “peace of mind” to parents and other contributors that a plan is in place.

Any Canadian resident under the age of 59 who is eligible for the Federal Disability Tax Credit (DTC) will be eligible for an RDSP. An account can be established by the legal guardian or Public Agency of the beneficiary.

In cases where the beneficiary is of the age of majority, the beneficiary can also be named account holder.

Registered Disability Savings Plans are federally regulated savings plans designed to provide for the long term financial security for Canadians with disabilities.
In addition to contributions, the added benefit of government grants and bonds combined with tax deferred growth, make RDSP's a very powerful investment tool.

Contributions can be made until the year the beneficiary turns 59 years old. There is a lifetime contribution maximum of $200,000. In some cases you may qualify for government grants and/or the Canada Disability Savings Bond program (CDSB) for lower income cases.

No, RDSPs are available to Canadian residents who qualify for the Disability Tax Credit (DTC), which permits a wide range of disabilities.

You can receive RDSP payments either by:

Disability Assistance Payment (DAP) - a lump sum payment that may be requested at any age.
Lifetime Disability Assistance Payment (LDAP) - regularly scheduled payments that once started must continue for life. These payments must begin by the end of year the beneficiary turns 60 but can be requested sooner.

Yes, you may be able to receive grant and bond amounts from previous years. The government allows unused entitlements to be carried forward for up to 10 years, depending on your eligibility and contributions. Opening an RDSP now could still provide valuable support.