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Financial services
Registered disability savings plan (RDSP)

Building the future for someone with a disability

  • Lifetime maximum contribution
  • Limit may qualify beneficiaries for:
    • Canada Disability Savings Grant (CDSG)
    • Canada Disability Savings Bond (CDSB)
  • Income is tax-free as long as it stays in the plan
 

Purpose

A government program that lets you enhance long-term financial security for someone with a severe disability who is eligible for the Disability Tax Credit.

Features

  • Contributions are enhanced by the Canada Disability Savings Grant (CDSG) based on the beneficiary's net family income and the amount of each RDSP deposit.
  • Contributions may not be required to access the Canada Disability Savings Bond (CDSB).
  • Lump sum withdrawals in the form of disability assistance payments (DAP) may be made under certain conditions.
  • Lifetime disability assistance payments may begin at any time, but no later than the end of the year the beneficiary turns 60, under certain conditions.
  • There can only be 1 beneficiary per RDSP, and 1 RDSP per beneficiary.
  • Proceeds from the RRSPs, RRIFs or RPPs (registered pension plan) of deceased parents or grandparents at the time of their death may be rolled over into the RDSP of a financially dependent child or grandchild.
  • Unused grant and bond entitlements for a given year can be carried forward for the next 10 years.
  • In addition, if the RDSP beneficiary is also a beneficiary of an RESP and has a severe and prolonged mental impairment that will prevent him or her from pursing a post-secondary education, under certain conditions the accumulated RESP income can be rolled over to the RSDP without a tax penalty.

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