Registered Disability Savings Plan

A Registered Disability Savings Plan (RDSP) provides long-term financial security for a person who receives the federal disability tax credit – whether that person is you or someone close to you. The person who opens the plan is the plan holder, and the person who receives proceeds is the beneficiary. A legally-competent adult can be the RDSP beneficiary and the plan holder.

Here are some benefits of an RDSP

  • It has no effect on benefits from income support programs like Social Services or Guaranteed Income Supplement
  • Government money can help jumpstart your RDSP savings:
    • The Canada Disability Savings Grant (CDSG): The federal government matches your RDSP contributions with up to $3,500 per year, and a lifetime total of $70,000. The size of the CDSG depends on your income level.
    • The Canada Disability Savings Bond (CDSB): Depending on your income level, you can receive up to $1,000 per year, and a lifetime total of $20,000, into your RDSP from the federal government. You don’t need to make contributions to receive the CDSB.
  • Once the RDSP beneficiary is over 18 years old, family income is based on their and their spouse’s income – not the plan holder’s

These are some of the limits on an RDSP

  • Government grants and bonds are given until the RDSP beneficiary reaches age 50
  • There’s a lifetime RDSP contribution limit of $200,000
  • The RDSP beneficiary needs to start making withdrawals when they reach 60 years old
  • The RDSP is intended for long-term savings – the Grant and Bond are to encourage savings, and should remain in an RDSP for at least ten years
You can be an RDSP beneficiary if:
  • You’re a resident of Canada under age 60
  • You have a valid social insurance number
  • You’re eligible for the Disability Tax Credit

Call our Wealth Advisory Team at 1.866.272.2521 or book an appointment online to discuss your options and get started on your RDSP.