How to Use a Registered Disability Savings Plan
Information about RDSP contributions, who is eligible and how it works
* Published on October 9, 2020
A registered disability savings plan (RDSP) is a savings plan that is intended to help parents/caregivers save for the long term financial security of a person who is eligible for the disability tax credit (DTC). Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59.
Things to know:
- The federal government will match every $1 with up to $3. This is called the Canada Disability Savings Grant.
- For people living on a low-income (less than $31,711), the federal government will put in $1000 every year for 20 years. This is called the Canada Disability Savings Bond. (People living on an income between $31,711 – $48,535 can still receive a partial bond.
- Anyone can contribute to an RDSP (family, friends, neighbours). A RDSP gives people who want to help a way to do so.
- The RDSP does not reduce disability benefits payments.
- People with disabilities can choose what to do with the money when it comes out. There are no restrictions on how the money can be spent.