What Happens If The Beneficiary Becomes Ineligible?

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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:

• The RDSP must be closed by the end of the following calendar year
• The holdback amount (any Grants or Bonds received within the previous 10 years) must be repaid to the government
• The remainder is paid to the Beneficiary and taxable in the year received
• The private contributions component is not taxable.

Go to: How are government benefits affected?

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