Registered Disability Savings Plan

RDSP

One of Canada's most generous registered savings plans. Designed for Canadians with disabilities.

$200,000
Lifetime Contribution Max
$70,000
Max Government Grant (CDSG)
300%
Max Government Match

Professional Explanation

A Registered Disability Savings Plan (RDSP) is a government-supported savings plan designed specifically for Canadians with severe and prolonged disabilities. It provides significant tax advantages and government contributions to help individuals with disabilities and their families build long-term financial security. The RDSP is one of the most generous registered savings plans in Canada in terms of government matching contributions.

Eligibility Requirements:

  • • Beneficiary must be eligible for Disability Tax Credit (DTC)
  • • Beneficiary must be resident of Canada
  • • Maximum age to open: End of calendar year beneficiary turns 59
  • • Once eligible, can remain open for decades

Contribution Limits:

  • • No annual contribution limit (unlike RRSP/TFSA)
  • • Lifetime contribution maximum: $200,000 per beneficiary
  • • Contributions are made with after-tax dollars (not tax-deductible)
  • • Anyone can contribute (family, friends, etc.) with written consent

Canada Disability Savings Grant (CDSG):

$3,500
Per year maximum
$70,000
Lifetime maximum

Income-based matching:

  • • Family net income under ~$50,000: 300% match (contribute $1, get $3)
  • • Family net income over ~$50,000: 100% match (contribute $1, get $1)
  • • Contributions must be made before Dec 31 to receive grant for that year

Canada Disability Savings Bond (CDSB):

  • • Up to $1,000 per year without requiring contribution
  • • Granted based on family net income
  • • Lifetime maximum: $20,000 per beneficiary
  • • Low-income families automatically receive bonds
  • • Provides money even if family has no contribution capacity

Grant Carryforward:

  • • Unused grants can be carried forward up to 10 years
  • • Maximum carryforward: $10,500 CDSG, $11,000 CDSB
  • • Allows catch-up contributions if grants are missed

Investment Flexibility:

  • • Can hold any investment type (cash, GICs, stocks, mutual funds, ETFs)
  • • Growth is tax-deferred until withdrawal
  • • Self-directed RRDSPs available for more control

Simple Explanation

Easy to Understand

An RDSP is a special savings account designed for people with disabilities. Here's what makes it really cool:

1.

You can put unlimited money in each year (unlike other registered accounts with annual limits)

2.

The government gives you FREE MONEY based on how much you contribute

3.

All the growth in the account is tax-free

The government matching is incredible: If your family income is under a certain amount, for every dollar you put in, the government adds three dollars. Even if you don't put anything in, the government might give you up to $1,000 per year as a gift.

You can have up to $200,000 total in lifetime contributions. When the person with the disability reaches age 60, they start taking money out. But the really cool part is: that money they take out is often tax-free or gets special tax treatment that helps them.

It's basically one of the government's most generous programs for building savings for people with disabilities.

Best For

  • Individuals eligible for DTC
  • Long-term financial security
  • Maximizing government grants
  • Building disability savings

Key Benefits

  • No annual contribution limit
  • Government matching up to 300%
  • Bonds available without contributions
  • Tax-deferred growth

Ready to Start Your RDSP?

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