Get started on your Application now!The RDSP is fairly new and has already had a couple of changes since it was launched in 2008. Our aim is to provide you with current, detailed and readable information about the RDSP. Detailed answers for each of the questions (faqs) below are available by clicking on the links. We welcome additional questions.
The Registered Disability Savings Plan (RDSP) is a federal government program that encourages people with disabilities and those who care for them to save and become more financially secure. The federal government encourages saving with generous contributions to RDSPs, even when people don’t contribute themselves. more…
How does the federal government contribute?
The federal government contributes to RDSPs through two programs: the Canada Disability Savings Bond and the Canada Disability Savings Grant. more…
To open a Registered Disability Savings Plan the beneficiary must qualify for the Disability Tax Credit (DTC). To be eligible, a person must have a disability or medical condition which restricts their ability to carry out one or more of the basic activities of daily living – the DTC is for anyone, of any age. more…
Who sets up and manages an RDSP?
An RDSP is owned by the Beneficiary – the person who has been granted disability status by Canada Revenue Agency and is claiming the Disability Tax Credit. An RDSP is administered by the Account Holder. more…
Anyone, with the written authorization of the Holder can contribute to an RDSP. This means contributions can be made by the Beneficiary, family, friends, charities, businesses, foundations, or others. People contributing to RDSPs do not receive a tax deduction for their contribution – in most circumstances, however, their contribution is matched by a very generous amount from the federal government. more…
How do payments/withdrawals work?
Generally, funds can be withdrawn from an RDSP anytime, but with some very important exceptions and restrictions. A withdrawal from an RDSP is called a payment. There are two types of payments from RDSPs: Lifetime Disability Assistance Payments and Disability Assistance Payments. more…
What happens when the beneficiary dies?
When the Beneficiary dies, the holdback amount (any Grant or Bond received within the previous ten years) must be repaid to the federal government. Whatever remains in a RDSP will become part of the Beneficiary’s estate and will be distributed according to his/her will. more…
When the beneficiary becomes ineligible?
If the Beneficiary loses his/her eligibility for the Disability Tax Credit, or his/her eligibility expires and is not renewed, the RDSP is collapsed and… more…
How are government income benefits affected?
People with disabilities and medical conditions receive income from a variety of sources: employment, long term disability plans, legal settlements, trusts, Canada Pension Plan – Disability, provincial income benefits for people with disabilities and Old Age Security and Guaranteed Income Supplement. more…
