What is an RDSP?

Program Details

A Registered Disability Savings Plan (RDSP) is a long-term savings plan for people with disabilities and helps their families save for long-term financial needs such as living costs and future medical needs. If you have a disability, you may be eligible to open an RDSP.

The RDSP is intended to encourage saving for the long- term financial security of a person eligible for the disability tax credit. An RDSP may be set up by the disabled person, a parent or a legal representative.

Once it has been set up, anyone can contribute to the plan for the benefit of the beneficiary up to a lifetime maximum of $200,000 per beneficiary. There is no annual limit. Contributions may be made until the end of the year the beneficiary attains 59 years of age.

Contributions to RDSPs may be supplemented by a Canada Disability Savings Grant and a Canada Disability Savings Bond.

Are You Eligible?

A Canadian resident who is eligible for the Disability Tax Credit (DTC) is eligible for an RDSP until December 31st of the year they reach age 59.

The DTC is available to individuals who have mental or physical impairments that markedly restrict their ability to perform one or more of the basic activities of living (i.e., speaking, hearing or walking). The impairment must be expected to last a period of one or more years, and a physician must certify the extent of the disability.

Individuals can apply to the Canada Revenue Agency (CRA) for the DTC using Form T2201.

Eligibility Requirements

is eligible for the Disability Tax Credit (disability amount);

is a Canadian resident;

is under 60 years of age (if 59, the individual must apply before the end of the calendar year in which he/she turns 59); and

has a social insurance number.

If the person is a minor, their parent or legal representative may establish the RDSP for their benefit.

Canada Disability Savings Grants

The Canada Disability Savings Grant (CDSG) is a matching grant. That means that the Government also pays into your RDSP to help you save. The Government gives matching grants of up to 300 percent, depending on the beneficiary’s family income and contribution. The maximum Grant amount is $3,500 per year, with a limit of $70,000 over your lifetime. Grants are paid into the RDSP until the end of the year you turn 49 years of age.

Net Family Income
up to or equal to $91,831.00

CDSG Matching Rates
300% on 1st $500.00
200% on next $1,000.00

Maximun Annual CDSG
$3,500.00

Net Family Income
over $91,831.00

CDSG Matching Rates
100% on first $1,000.00

Maximun Annual CDSG
$1,000.00

All provinces and territories fully or partially exempt Registered Disability Savings Plan (RDSP) assets and income. Contact your provincial or territorial government to make sure you get the most up-to-date details.

1
Fully Exempt

These government’s fully exempt the income and assets of an RDSP when determining eligibility for provincial financial assistance programs.

Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland & Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Saskatchewan, Yukon
2
Partially Exempt

Prince Edward Island – The Prince Edward Island government exempts RDSP assets when calculating eligibility for social programs such as social assistance, disability support services, child care subsidies, social housing, pharmacy programs and children’s dental programs. Any withdrawal from an RDSP will be exempt as long as total income is not greater than the low-income level defined by the National Council of Welfare.

Quebec – The Quebec government exempts RDSP assets from social assistance calculations. Withdrawals from an RDSP will be exempt up to a maximum amount as defined by the Ministère de l’Emploi et de la Solidarité sociale.

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