Registered Disability Savings Plan
Introduction to the RDSP
The Registered Disability Savings Plan (RDSP) is a long-term savings plan to help Canadians with disabilities and their families save for the future. If you have an RDSP, you may also be eligible for grants and bonds to help with your long-term savings.
You should consider opening an RDSP if you have a long-term disability and are:
- eligible for the Disability Tax Credit;
- under the age of 60 (if you are 59, you must apply before the end of the calendar year in which you turned 59);
- a Canadian resident with a Social Insurance Number (SIN); and
- looking for a long-term savings plan.
You may contribute any amount to your RDSP each year, up to the lifetime contribution limit of $200,000. With written permission from the RDSP holder, anyone may contribute to the RDSP.
RDSP Savings Calculator
The RDSP Savings Calculator will help you anticipate how money contributed to your RDSP could grow over time by calculating the estimated amount of Grant and Bond you could receive, based on contributions and annual family income, as well as the amount of interest accumulated.
Registered Disability Savings Plan – Module 1: Start Saving for the Future
The video describes who can open an RDSP and benefit from it and who can make contributions, helping Canadians living with disabilities and their families become more financially secure.
Registered Disability Savings Plan – Module 2: Grants and Bonds to Make Your Savings Grow
The federal government can help increase the savings of eligible Canadians by contributing to their RDSP through:
- a Canada Disability Savings Grant
- a Canada Disability Savings Bond
- allowing money to be moved from some retirement and education savings plans.
Registered Disability Savings Plan – Module 3: Taking Money Out
An RDSP is a long-term savings plan which has specific conditions about taking money out. This video explains who can withdraw funds and when they can be withdrawn. It also tells you what happens when there are changes regarding a beneficiary.
Accessible RDSP video
(A woman is standing in front of a black backdrop communicating in American Sign Language.)
I'm pleased to tell you about a federal government program to help Canadians with disabilities and their families save for the future.
It's the Registered Disability Savings Plan or RDSP.
Who should consider opening an RDSP?
Well, you are eligible if you have a long-term disability and are:
- under the age of 60;
- a Canadian resident with a Social Insurance Number;
- eligible for the Disability Tax Credit; and
- looking for a long-term savings plan.
To encourage savings, the Government of Canada pays a matching grant of up to 300 percent, depending on the amount contributed and your family income.
That means the government will pay up to $3,500 a year in grants, with a limit of $70,000 over the beneficiary's lifetime.
For Canadians with low and modest incomes, the government also pays a bond of up to $1,000 a year, with a limit of $20,000 over the beneficiary's lifetime. No contributions are needed to receive the Bond.
Grants and bonds are paid until the year the beneficiary turns 49.
Grants and bonds are intended to encourage long-term savings. They must remain in the RDSP for at least 10 years.
The plan holder, or anyone with written permission from the plan holder, can contribute to an RDSP. There is no annual contribution limit, but there is a lifetime contribution limit of $200,000. And, until you take money out of the plan, your earnings accumulate tax-free.
That's good news for your financial security!
To learn more, I invite you to browse www.disabilitysavings.gc.ca. TTY users can contact 1-800-926-9105.
This website contains a list of financial organizations that offer the RDSP, the Grant and the Bond.
The RDSP is part of our government's commitment to help Canadians with disabilities save for the future.
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