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Explore options available for Canadians with Disabilities
What is an RDSP?
A Registered Disability Savings Plan (RDSP) is a government registered savings plan that helps Canadians with disabilities and their families save for long-term financial needs1, such as future medical and living costs, by growing their savings on a tax-deferred basis, similar to an RSP.
You can contribute as much or as little as you want in any given year, and you can continue to make contributions up until the end of the year in which the beneficiary turns 59.
Anyone can contribute to the RDSP provided they have written permission to do so, and there are no restrictions on what the money can be used for once it is withdrawn, as long as it’s used to help the beneficiary.
While RDSP contributions are not tax-deductible, income earned grows on a tax-deferred basis. When withdrawn, the funds are taxed as income. You may be eligible for government assistance in the form of grants and bonds.
The government helps you save
Your Registered Disability Savings Plan (RDSP) is eligible to receive government assistance through two financial programs, which can really help your savings grow faster.
An RDSP is eligible for the Canada Disability Savings Grant (CDSG). Depending on your family’s net income and the amount contributed, there are benefits from matching grants of 100%, 200% or 300% — up to a lifetime limit of $70,000 (as shown in the chart below). Grants will be paid into an RDSP up to the end of the year in which the beneficiary turns 49.
|
Family net income* up to $87,900 |
Family net income* over $87,900 |
|---|---|
|
300% on $500 (maximum of $1,500) |
100% on first $1,000 (maximum of $1,000) |
|
200% on next $1,000 (maximum of $2,000) |
100% on first $1,000 (maximum of $1,000) |
|
Example: A $1,500 contribution generates $3,500 CDSG |
Example: A $1,000 contribution generates $1,000 CDSG |
* Indexed to 2015 income thresholds. Thresholds are indexed to inflation annually.
An RDSP is eligible for the Canada Disability Savings Bond.
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Family net income* up to $25,500 |
Family net income* between $25,500 and $43,900 |
Family net income* over $43,900 |
|
|---|---|---|---|
|
$1,000 per year |
Portion of $1,000 based on a formula |
$0 |
* Indexed to 2015 income thresholds. Thresholds will be indexed to inflation annually.
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1 Conditions apply.