The Registered Disability Savings Plan (RDSP) is a tax-sheltered plan created by the federal government to help people with disabilities build long-term financial security.

What are the advantages of an RDSP?

For the beneficiary of an RDSP, there are three big advantages. Earnings grow tax-free, so your savings grow faster. RDSPs are also eligible for government incentives, up to $70,000 in grants and $20,000 in bonds. And payments to a beneficiary from an RDSP do not affect income-tested programs like Old Age Security, the Guaranteed Income Supplement and the Canada Pension Plan.

What is the disability tax credit?

The disability tax credit is a federal income tax credit for people with disabilities and people who support them. It was created to help offset some of the unavoidable expenses unique to those with severe and prolonged impairment.

Who's eligible for an RDSP?

Anyone who's eligible for the Disability Tax Credit can be the beneficiary of an RDSP. To qualify you need to be a Canadian resident, have a valid Social Insurance number, and be under 60. To be eligible for Disability Tax Credit, you must complete a Disability Tax Credit Certificate, Canada Revenue Agency (CRA) Form T2201, with the assistance of a qualified professional, and receive approval from CRA.

What government incentives is an RDSP eligible for?

There are two government incentives available through RDSPs. The Canada Disability Savings Grant can add up to $3,500 a year to a lifetime maximum of $70,000. The Canada Disability Savings Bond can add up to $1,000 annually to a lifetime maximum of $20,000. So that's a great incentive for starting a plan early!

Are RDSP contributions tax deductible?

No, contributions to an RDSP are not tax deductible. But when those contributions are paid out to the beneficiary they won't count as income.

Is there a contribution limit?

There's no annual contribution limit for an RDSP. The lifetime maximum for a beneficiary is $200,000.

Registered Disability Savings Plans

Earnings in your R D S P are tax-sheltered
Access your money when you need it
Strict penalties for withdrawals before incentives are vested may apply.
Benefit from government programs to earn additional income

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Why invest in an R D S P?

Tax-sheltered earnings
Your earnings grow tax-free until the money is taken out. That could add up to a lot of savings.
Get access to your money
Strict penalties for withdrawals before incentives are vested may apply.
As the beneficiary of an R D S P, you can access your money two ways —annual payments or periodic lump sum withdrawals.
You’re still eligible for other programs
Income payments from Registered Disability savings plans don’t affect Old Age Security, Guaranteed Income Supplement and the Canada Pension Plan, and in most provinces and territories, you’ll still qualify for existing provincial social assistance programs.