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Registered Disability Savings Plan

Caring for a loved one with a disability often takes its toll, both emotionally and financially. If you are worried about what the future may bring and how you can prepare for it, a Registered Disability Savings Plan (RDSP) may fit your plan.

Who can benefit?

  • Individuals who are eligible for the federal Disability Tax Credit, are residents of Canada and under the age of 60

How does an RDSP work?

  • Parents or guardians may open an RDSP for a minor
  • An individual over the age of 18 and eligible for the Disability Tax Credit
    can open their own
  • A maximum of $200,000, can be contributed to a beneficiary’s RDSP
    with no annual limit
  • Investments will grow tax-free inside the RDSP until withdrawal

Government funds add to savings

  • The Canada Disability Savings Grant (CDSG) is a matching grant provided by the government and based on family net income.

    • Grants are payable until the end of the year the beneficiary reaches age 49
    • Lifetime maximum grant amount is $70,000
  • The Canada Disability Savings Bond (CDSB) is available to Canadians with a low or modest family income

    • The bond can be added to an RDSP, even if no contributions are made
    • Lifetime maximum bond amount is $20,000

Withdrawals

  • Withdrawals consist of contribution, grant, bond, income. The portion that is grant, bond or investment growth is taxable to the beneficiary.
  • Withdrawals from the plan can start at any time; however, the beneficiary must start receiving payments in the year they turn 60
  • The beneficiary may withdraw from the RDSP as soon as it is established. Grant or bond deposits received in the 10 years prior to the withdrawal however, must be repaid to the government.

An RDSP is intended for long-term savings. Get advice. Talk with one of our Consultants and find out how an RDSP strategy can provide the peace of mind you’re looking for.