The Registered Disability Savings Plan (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.

Contributions to RDSPs may be supplemented by a Canada Disability Savings Grant (Maximum $70,000), the Government of Canada provides matching grants depending on the amount contributed and the beneficiary's family income and a Canada Disability Savings Bond (Maximum $20,000) to low-income and modest-income Canadians. No contributions are required to receive the bond. Grants and bonds are great incentive for disabled persons and their families. The beneficiary of the RDSP is the person who will receive the money in the future. The purpose of the Government is to encourage long term savings through Registered Disability Savings Plans (RDSPs) to help people with severe and prolonged disabilities and their families save for the future.

Who can open (RDSP)

To open a plan, the beneficiary must:

1. Be approved for the Disability Tax Credit

2. Apply before December 31 of the year they turn 59

3. Be a resident of Canada

4. Have a SIN

You need to meet all of the above to be eligible to open a plan.
The amount of grant or bond you receive depends on your family income and the amount you contribute. You can receive grants and bonds until December 31 of the year you turn 49.

This video by Employment and Social Development Canada 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.

Grants and bonds from the government

When you open an RDSP, you can apply for a Canada Disability Savings Grant and Bond:

The Canada Disability Savings Grant is a matching grant that is paid up until December 31 of the year you turn 49. That means that, if you contribute to your plan, the government will also put money into your plan. The maximum yearly grant amount is $3,500, with a limit of $70,000 over your lifetime.

The Canada Disability Savings Bond is money the government contributes to the RDSPs of low- and modest-income individuals. You do not need to make any contributions to your plan to receive the bond. The maximum yearly bond amount is $1,000 until you reach the limit of $20,000.

You may receive more in a year if you were approved for the Disability Tax Credit (DTC) for any or all of the past 10 years. This amount is called a carry-forward.

How much you get depends on family income and contributions

 

Withdraw money from your (RDSP)plan

The RDSP is a long-term savings plan. The purpose of this plan is to support people with disabilities to have savings as they age.

Regular withdrawals from a plan must begin by December 31 of the year you turn 60.

In some cases, you may want to withdraw savings sooner. In this case, you may need to pay back some grant and bond amounts when you make a withdrawal.

You do not need to repay grants and bonds when you make a withdrawal if:
> You turned 60
> The last time you received a grant or bond in your account was more than 10 years ago
> You have a reduced life expectancy of 5 years or less
You will need to repay grants and bonds when you make a withdrawal if:
> You have received grants and bonds in the last 10 years
> You are not DTC approved and are under the age of 60

Important Information

Please note to qualify for Grants and Bonds beneficiary's age should be 49 or less.

if you need assistance to complete Disability Tax Credit application you can Call us at 647-951-7900 or email us 

Important: Individuals with an RDSP don’t qualify for the government grants or bonds if they are over 49 years of age. So eligible person who is over 40 may lose government grants or bonds if he waited long to open RDSP. For more info regarding RDSP plan Call us at 647-951-7900 or email us

Who can contribute to an RDSP?
Anyone can contribute to an RDSP with the written permission of the plan holder.

Why open an RDSP?

  • RDSP can help you build long-term financial security for yourself [or your loved one]
  • RDSP will not affect your other provincial government disability benefits.
  • Take advantage of government grants and bonds and contribute every year to get the
    maximum annual Canada Disability Savings Grant and Canada Disability Savings Bond.
  • If anyone have a low income, the government will still save for them.

 

To learn about How to Obtain Up to $90,000 of Government help in form of Grant and Bond by opening RDSP plan for Disabled Family member please call us at 647-951-7900 or email us