Human Resources and Skills Development Canada
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Human Resources and Skills Development Canada

www.hrsdc.gc.ca

RDSP Overview

You should consider opening a Registered Disability Savings Plan (RDSP) if you have a long-term disability and are

For more information on who can open a plan, see Open an RDSP.

RDSP at a glance

  • The RDSP is a long-term savings plan to help Canadians with disabilities and their families save for the future.
  • The "beneficiary” of the RDSP is the person who will receive the money in the future.
  • Anyone can contribute to an RDSP if they get the written permission of the RDSP holder (the person or organization that opens and manages the RDSP).
  • There is no annual contribution limit to the RDSP, but there is a lifetime contribution limit of $200,000.
  • The deadline for contributions each year to an RDSP is December 31 of that year.
  • To help you save, the Government pays a matching grant of up to $3,500, depending on the amount contributed and your family income.
  • The Government also pays a bond of up to $1,000 a year into the RDSPs of low-income and modest-income Canadians.
  • Grants and bonds are paid until the year the beneficiary turns 49.
  • As of January 2011, you are allowed to carry forward unused grant and bond entitlements for a 10-year period preceeding the opening of the plan (starting from 2008, the year RDSPs became available).
  • As of July 2011, the proceeds from a deceased parent’s or grandparent’s Registered Retirement Savings Plan, Registered Retirement Income Fund and Registered Pension Plan can be rolled over into the RDSP of a financially dependent child or grandchild with a disability.
  • Earnings accumulate tax-free, until money is taken out of the RDSP.
  • To encourage savings, grants and bonds must remain in the RDSP for at least 10 years.
  • There is no impact on federal benefits, such as the Canada Child Tax Benefit, the Goods and Services Tax Credit, Old Age Security, and Employment Insurance.
  • In all provinces and territories, RDSPs will have little or no impact on social assistance payments (see RDSP and Provincial and Territorial Benefits).
  • To open an RDSP and apply for the grant and bond, contact one of the participating Financial Organizations.

More information

Canada Revenue Agency – Registered Disability Savings Plan

Long-term disability saving

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Date Modified:
2011-09-13