Build financial security with purpose
A Registered Disability Savings Plan is a long-term savings and investment account designed to help support the future financial well-being of a person who qualifies for the Disability Tax Credit.
Family members and other contributors may be able to add money to the plan, while eligible beneficiaries may also receive government assistance through the Canada Disability Savings Grant and Canada Disability Savings Bond.
Who can benefit from an RDSP?
RDSP planning begins with the beneficiary's eligibility and personal circumstances.
Disability Tax Credit Eligibility
The beneficiary generally must qualify for the Disability Tax Credit to open and maintain an RDSP.
Valid Social Insurance Number
The beneficiary must have a valid SIN and meet applicable Canadian residency requirements.
Long-Term Savings Horizon
Contributions may generally continue until the end of the year in which the beneficiary turns 59.
Plan Holder Rules
Depending on the beneficiary's age and legal capacity, the beneficiary, parent, legal representative or other permitted holder may establish the plan.
Why plan your RDSP with TruCover?
Personalized RDSP Review
We help you organize eligibility, contribution strategy and long-term objectives into one planning framework.
Government Benefit Awareness
We help identify where grants, bonds and catch-up opportunities may fit, subject to program eligibility.
Investment Guidance
We help align the investment mix with the beneficiary's time horizon, risk profile and expected future needs.
Ongoing Reviews
RDSP planning can change with income, age, DTC status, family circumstances and withdrawal needs.
Understanding RDSP withdrawals
Withdrawals require careful planning because government assistance received in prior years may be affected.
Personal Contributions
Amounts representing personal contributions are generally not taxed when paid to the beneficiary.
Government Assistance & Growth
Grant, bond and investment-growth portions are generally included in the beneficiary's income when withdrawn.
Assistance Holdback Rules
Recent grants and bonds can be subject to repayment when withdrawals are made. The amount depends on applicable RDSP rules.
DAP & LDAP Payments
RDSPs can provide disability assistance payments and, later in life, lifetime disability assistance payments.
Why the RDSP can be powerful
It combines family savings, government incentives and long-term investment growth inside a registered structure specifically designed for disability planning.
Government support can significantly enhance the plan
Eligible RDSP beneficiaries may qualify for the Canada Disability Savings Grant (CDSG) and Canada Disability Savings Bond (CDSB). Grant and bond amounts depend on factors such as family income, age and contribution history.
Program | How it works | Key point |
|---|---|---|
Canada Disability Savings Grant | Provides matching contributions based on family income and the amount contributed. | Can provide enhanced matching for eligible families. |
Canada Disability Savings Bond | May be paid to eligible lower-income beneficiaries even when no personal contribution is made. | No contribution may be required to receive the bond. |
Unused Entitlements | Eligible unused grant and bond entitlements may be carried forward from prior years, subject to program rules. | Catch-up planning can matter. |
1
Discovery
Understand the beneficiary, family situation and long-term financial priorities.
2
Eligibility Review
Confirm key RDSP requirements and identify government assistance considerations.
3
Plan Design
Build an appropriate contribution and investment strategy.
4
Review
Revisit the plan as the beneficiary's needs and rules change over time.
Plan the RDSP around the beneficiary's whole financial picture
An RDSP is most effective when it is coordinated with the beneficiary's expected future needs, available family resources, other registered accounts and government benefits.
1
Confirm Eligibility
Review DTC eligibility, age, residency and who can act as plan holder.
2
Review Grant & Bond Room
Understand current and carried-forward government assistance opportunities.
3
Choose a Funding Strategy
Determine how much to contribute and when, based on family cash flow and long-term goals.
4
Invest for the Time Horizon
Select investments suited to the beneficiary's timeline, risk tolerance and future withdrawal needs.
Timing matters
Grant and bond eligibility generally ends after the year the beneficiary turns 49, so starting early can create more opportunity to use available government assistance.
RDSP contribution rules
The RDSP is designed for long-term planning rather than annual contribution maximization.
$200,000 Lifetime Contribution Limit
Personal contributions to an RDSP are subject to a lifetime contribution limit per beneficiary.
No Annual Contribution Limit
There is generally no fixed annual contribution limit, but the lifetime maximum still applies.
Contributions Are Not Tax-Deductible
Personal RDSP contributions do not create an income-tax deduction.
Tax-Deferred Growth
Investment growth, grants and bonds can accumulate inside the registered plan until amounts are withdrawn.
Frequently asked questions
No. An eligible person with a disability can have an RDSP at different stages of life, subject to age and program rules.
Eligible lower-income beneficiaries may receive the bond without making a personal contribution, subject to government eligibility requirements.
Contributions can generally be made by others with the plan holder's written permission, provided contribution rules and the lifetime limit are respected.
Special RDSP rules apply when DTC eligibility changes. The plan should be reviewed before making contributions, withdrawals or other changes.
The timing depends on the beneficiary's age, needs, plan value and government-assistance history. Lifetime disability assistance payments generally become mandatory by the end of the year the beneficiary turns 60.
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