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.

RDSP benefits

  • 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.

RDSP limits

  • 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

Contact an Affinity Wealth Management Specialist at 1.866.272.2521 or book an appointment online to discuss your options and get started on your RDSP.