• Registered
  Disability Savings
  Plan (RDSP)
• RDSP
  Essentials
• RDSP
  Investment Options
• Open
  an RDSP

What is an RDSP?

A Registered Disability Savings Plan (RDSP) is a registered savings plan designed to provide long-term financial security for a person with a disability. Tax-deferred investment growth, along with generous government grants and bonds make the RDSP a powerful investment tool.

How Can a Plan Help?

Contributions have the potential to grow more quickly than if they were invested in taxable investments outside an RDSP. Plus, government incentives promote even faster growth. RDSP beneficiaries may be eligible for Canada Disability Savings Grant (CDSG) and Canada Disability Savings Bond (CDSB) benefits. These all make a substantial contribution to a brighter financial future.

Those who don’t have the financial means to contribute to an RDSP can benefit from the CDSB program. Lower-income beneficiaries may qualify for CDSB payments to an RDSP up to a lifetime maximum of $20,000

Who is Eligible?

An RDSP is set up in the name of a beneficiary, the person with the disability. The beneficiary must be a Canadian resident, under 60 years of age, with a valid Social Insurance Number and who is eligible for the Disability Tax Credit (DTC).

The person who establishes the plan is known as the plan holder.

When the beneficiary is a minor, the plan holders are typically the legal parents or legal guardians of the beneficiary or someone who has the legal authority to act on behalf of the individual.

An adult who qualifies as a beneficiary can also be the plan holder if the individual is able to manage their finances. If the adult beneficiary is not legally competent, a legal guardian or other qualified person or agency legally authorized to act on behalf of the beneficiary must be the plan holder.

An RDSP can be held in joint ownership, with both parents named as plan holders. Other eligible plan holders include an adult beneficiary, a tutor, curator or other individual or organization legally authorized to act on behalf of the beneficiary.

To determine your eligibility please visit the Canada Revenue Agency website.

Who Can Contribute?

Anyone can contribute to an RDSP. However, a contributor must have the written consent of the plan holder.

How Much Can Be Contributed?

There is no annual limit on the amount that can be contributed to an RDSP. However, total contributions to an RDSP cannot exceed a lifetime limit of $200,000.

An important point to note is that contributions to an RDSP, unlike RRSP contributions, are not tax-deductible.