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Registered Disability Savings Plans (RDSPs)

Registered Disability Savings Plans (RDSPs)

If you or a family member qualifies for the Federal DTC, there are numerous benefits to doing so. Contributions to your RDSP, while not tax deductible, will compound on a tax-deferred basis and over time can add significantly to the value of your plan. In addition, your contributions may attract an additional boost with the Canada Disability Savings Grant.

Even if you do not have the financial means to contribute to an RDSP, you may be eligible for the Canada Disability Savings Bond, which will help you build a more secure financial future.

The person who establishes an RDSP is referred to as the account holder; however anyone can contribute to an RDSP provided they have written permission of the account holder. An adult who qualifies for the plan can be both the plan beneficiary and the plan holder.

In case the beneficiary is a minor or is not legally able to enter into a contract, another person will be qualified to become the account holder if that person is a legal parent of the beneficiary (legal parents can both be plan holders under a plan); a guardian or curator of the beneficiary or an individual who is legally authorized to act for the beneficiary; or a public department, agency, or institution that is legally authorized to act for the beneficiary.

There is no annual contribution limit to an RDSP. However, each RDSP has a lifetime contribution limit of $200,000 per plan. All contributions, however, must cease by the end of the year in which the plan beneficiary reaches age 59, or the beneficiary no longer qualifies for the DTC or is no longer a resident of Canada. Contributions must also cease upon the death of the beneficiary.

Canada Disability Savings Grant (CDSG)

The federal government provides the CDSG to RDSP beneficiaries based on the adult beneficiary’s net income and the amount of annual RDSP contributions. Where the beneficiary is a minor, the CDSG is based on the net income of the beneficiary’s family and the amount of the annual plan contribution. The maximum lifetime CDSG is $70,000 per RDSP beneficiary and CDSG eligibility ends December 31 in the year in which the plan beneficiary turns age 49.

Canada Disability Savings Bond (CDSB)

The CDSB is available to beneficiaries or families with a net family income lower than $41,544. RDSP contributions are not required to be eligible to receive for CDSB. The maximum lifetime CDSB is $20,000 per RDSP beneficiary and CDSB eligibility ends December 31 in the year in which the plan beneficiary turns age 49.

To find out more about recent changes to RDSP please visit: or… for general information.


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