Registered Disability Savings Plan (RDSP)

Key features of RDSPs

A Registered Disability Savings Plan (RDSP) is a means of supporting those who have a disability and are registered for the Disability Tax Credit  (DTC) to save for their future. Here are some important things to know about these savings plans:

  • The person who is registered for the DTC and who will benefit from these savings in the future is known as the beneficiary.
  • The person who opens and manages the plan on an ongoing basis is known as the plan holder. The beneficiary and plan holder can be the same person or different people.
  • Payments can be made into the RDSP until the beneficiary is 59 years of age.
  • Holding an RDSP will not impact the beneficiary’s eligibility for disability benefits, including ODSP and income- and asset-tested housing support.
  • There is a lifetime contribution ceiling of $200,000 into the plan, but there isn’t an annual cap on the value of contributions.
  • While there is no tax due on the investment earnings as long as they remain in the plan and are not withdrawn, the contributions are not tax deductible.
  • There are federal government programs such as the Canada Disability Savings Grant and the Canada Disability Savings Bond, from which the beneficiary may be eligible to receive significant government contributions to their RDSP.
  • Visit the Government of Canada website for more information about the Grants and Bonds available for RDSPs.
  • Regular payments must be taken from the plan by the time the beneficiary reaches the age of 60 and may be taken earlier.
  • The savings held in the plan can be invested in a variety of different ways, depending on where the plan is opened.

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