What is the RDSP?

The Registered Disability Savings Plan (RDSP) helps Canadians living with disabilities meet long-term financial needs by combining personal and government contributions in a tax-deferred plan. With careful management, an RDSP can provide significant support for disabled people as they age.

Who is Eligible?

You can be an RDSP beneficiary if you:

  • are eligible to claim the Disability Tax Credit (DTC);
  • have a Social Insurance Number (SIN);
  • reside in Canada; and,
  • are under age 60 when the plan is opened.

Reasons to Consider an RDSP

  • Grow long-term savings in a tax-deferred plan.
  • Matching contributions through Canada Disability Savings Grant, depending on family income.
  • Low-income families may be eligible for Canada. Disability Savings Bonds, no contributions required.
  • Beneficiaries can use the benefits for any purpose.

RDSP Benefits

  • RDSP benefits have no impact on other income based federal programs such as Old Age Security (OAS) or Guaranteed Income Supplement (GIS).
  • Most provincial and territorial support programs are not impacted by RDSP benefits; however, you should check the specific details for your province.
  • Beneficiaries must begin to withdraw funds by the year they turn 60.
  • Withdrawals can be in the form of recurring annual payments or lump sum payments and can be requested once the beneficiary turns 27 if certain conditions are met.
  • Your financial advisor can help you plan the timing of withdrawals.

 

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