Registered disability savings plan (RDSP)
A government program that lets you enhance long-term financial security for someone with a severe disability who is eligible for the Disability Tax Credit.
Building the future for someone with a disability
- Lifetime maximum contribution
- Limit may qualify beneficiaries for:
- Canada Disability Savings Grant (CDSG)
- Canada Disability Savings Bond (CDSB)
- Income is tax-free as long as it stays in the plan
Purpose
A government program that lets you enhance long-term financial security for someone with a severe disability who is eligible for the Disability Tax Credit.
Features
- Contributions are enhanced by the Canada Disability Savings Grant (CDSG) based on the beneficiary's net family income and the amount of each RDSP deposit.
- Contributions may not be required to access the Canada Disability Savings Bond (CDSB).
- Lump sum withdrawals in the form of disability assistance payments (DAP) may be made under certain conditions.
- Lifetime disability assistance payments may begin at any time, but no later than the end of the year the beneficiary turns 60, under certain conditions.
- There can only be 1 beneficiary per RDSP, and 1 RDSP per beneficiary.
- Proceeds from the RRSPs, RRIFs or RPPs (registered pension plan) of deceased parents or grandparents at the time of their death may be rolled over into the RDSP of a financially dependent child or grandchild.
- Unused grant and bond entitlements for a given year can be carried forward for the next 10 years.
- In addition, if the RDSP beneficiary is also a beneficiary of an RESP and has a severe and prolonged mental impairment that will prevent him or her from pursing a post-secondary education, under certain conditions the accumulated RESP income can be rolled over to the RSDP without a tax penalty.