Registered Disability Savings Plan (RDSP)
Ensure the long-term financial security of a severely disabled person eligible for the disability tax credit.
Investment
Building a future for a disabled person
- Maximum lifetime contribution
- May entitle :
- Canada Disability Savings Grant
- Canada Disability Savings Bond
- Tax-sheltered income as long as it remains in the plan
Purpose of the plan
Ensure the long-term financial security of a severely disabled person eligible for the disability tax credit.
Plan features
- Enhanced Canada Disability Savings Grant (CDSG) contribution based on beneficiary’s net family income and the amount of each RDSP deposit.
- Without even having to contribute, access to the Canada Disability Savings Bond (CDSB).
- Lump-sum withdrawal in the form of a Disability Assistance Payment (DAP) under certain conditions.
- Lifetime disability payments can begin at any time, but no later than the end of the year in which the insured reaches age 60, under certain conditions.
- Only one beneficiary per plan, and the beneficiary can establish only one plan.
- Transfer of a parent’s or grandparent’s RRSP, RRIF or RPP (registered pension plan) at the time of death to the RDSP of a financially dependent child or grandchild.
- Unused grant and bond entitlements for the year can be carried forward to the following 10 years.
- If the RDSP beneficiary is also an RESP beneficiary and has a severe and prolonged mental impairment that would likely prevent him or her from pursuing a post-secondary education, the income accumulated in the RESP can, under certain conditions, be transferred to the RDSP on a tax-free basis.