Key RDSP Facts
Who Can Open an RDSP
Individuals eligible for the Disability Tax Credit (DTC)
The holder of the plan can be the beneficiary (the person with the disability) or a legal guardian/parent
Tax Advantages
Contributions to an RDSP are not tax-deductible
Earnings within the plan grow tax-free until withdrawn
Government Incentives
Canada Disability Savings Grant (Grant):
A matching grant where the government contributes up to 300% of your contribution, depending on income and contribution amount, to a maximum of $3,500 per year
Canada Disability Savings Bond (Bond):
Income-tested support where the government contributes up to $1,000 annually, even if no personal contributions are made
Important Deadlines
Contribution Deadline
The deadline for opening an RDSP, making contributions, and applying for the Grant and Bond for a given year is December 31 of that year
Example: The deadline for the 2021 contribution year was December 31, 2021
Why Contribute to an RDSP?
Maximize Government Contributions
Take advantage of the Grant and Bond to significantly grow the savings in your RDSP
Long-Term Security
Save for future needs without impacting eligibility for other federal disability benefits
Tax-Free Growth
Investments in the RDSP grow tax-deferred, helping your savings compound faster
What Happens at Age 60?
At age 60, mandatory withdrawals from the RDSP, known as Lifetime Disability Assistance Payments (LDAPs), begin
Any government contributions (Grants or Bonds) made within the last 10 years may need to be repaid if funds are withdrawn earlier
Why This Matters
An RDSP can provide significant financial support for individuals with disabilities, helping them achieve long-term stability and security