Why was the RDSP created?

In an effort to empower people living with disabilities the Registered Disabilities Savings Plan was created by the Federal Government in 2008. The goal of the program was to help ensure that every Canadian is able to live a safe and secure life.

It is well known that a person’s wealth often plays an important role in predicting her/his long-term health. Financial wealth often determines where you live, the types of food you consume, your fitness level, and the quality of healthcare you are able to access. With proper planning, the RDSP can help people living with disabilities enjoy a good life.

For parents, setting up a stable and secure financial future will provide the peace-of-mind in knowing that their son or daughter will be able to enjoy a good life.

Is there a contribution limit?

There is no annual contribution limit; however, the lifetime contribution limit is $200,000. Contributions can be made into an RDSP until the end of the calendar year in which the beneficiary turns 59.

Which part of the RDSP is taxed?

Federal contributions and savings generated within the plan count as income, this portion of the RDSP will be taxed at the time of withdrawal. Private contributions are not subject to tax.

Who can contribute to an RDSP?

Contributions into the RDSP can be made by anyone with written permission from the planholder. This includes family members, friends, charities, foundations and organizations.

When can I withdraw savings from my RDSP?

Withdrawals can be taken at any age, although they must begin at the age of 60. Once a withdrawal is made, you are free to spend the money on anything you choose. Grants and bonds must be in an RDSP for 10 years before any withdrawals are made, otherwise the grants and bonds must be repaid.