What is the Registered Disability Savings Plan?

The Registered Disability Savings Plan (RDSP) is a valuable savings plan created by the government of Canada to encourage people with disabilities to start saving for their futures. As an incentive, the federal government is committed to contributing matching grants and automatic annual bond contributions to an eligible individual’s RDSP account to a maximum of $90,000.

Who is it for?

The RDSP is for people under the age of 59 with a physical and/or mental disability (must be validated by the Disability Tax Credit Certificate). In order to be eligible for government contributions, the individual (beneficiary) must be under 50 years of age.

The beneficiary must meet all of the following requirements:

  • be qualified for the Disability Tax Credit (DTC)*;
  • be under the age of 60;
  • be a Canadian citizen;
  • have a valid Social Insurance Number (S.I.N.); and
  • have filed tax returns for the last 2 consecutive tax years.

*Please call us toll-free at 1-877-690-0330 or Submit an Inquiry Form if you are currently not claiming the Disability Tax Credit (DTC).

What are the Benefits of Opening an RDSP?

The RDSP is a valuable savings plan for people with disabilities. Some of the benefits in opening an RDSP include:

  • receiving up to $3,500 per year in matching government grants;
  • receiving up to $1,000 in annual government bonds;
  • Tax-deferred growth on investments within the RDSP; and
  • partial taxes on future withdrawals.

2010 Budget Changes

Beginning in 2011, RDSP eligible beneficiaries will now be allowed to carry forward government contributions (matching disability savings grants and disability savings bonds) from the previous ten years (depending on the year the beneficiary was DTC eligible). As the RDSP became eligible in 2008, the carry forward provisions start from 2008 going forward.

How and Where Can You Open an RDSP?

Most major financial institutions across Canada are currently offering the RDSP. In order to open an RDSP, financial institutions may require you to provide proof of eligibility for the Disability Tax Credit (DTC).