Registered Disability Savings Plan (RDSP)
RDSP is a long-term savings plan that can help someone with disabilities who is eligible for the Disability Tax Credit (DTC).
What is the RDSP?
A Registered Disability Savings Plan (RDSP) is a plan that helps save for the longterm financial security of a person who is eligible for the Disability Tax Credit (DTC). The government can make contributions of up to $90,000 for those who start their RDSP early enough.
The RDSP was created by the federal government as a long-term savings plan for people with disabilities. Parents, friends and family are able to contribute to an RDSP to help it grow. It can help people even if they can’t afford to put any money into the plan. Once you have the DTC, you can open an RDSP at most financial institutions by making an appointment.
What's the Financial Benefit?
The RDSP is an important financial savings vehicle for people with disabilities because it helps individuals accumulate significant savings for their later years. Funds held in an RDSP do not affect other disability benefits such as monthly PWD payments. If the recipient is under age 49, they can access up to $90,000 in government bonds and matching grants.
You can claim up to ten years of retroactive grants and bonds for the years the beneficiary qualified for the DTC.
The Disability Savings Bond provides $1000/year to those whose income is less than $32,000/year even without personal contributions.
The Disability Savings Grant provides the opportunity to contribute up to $1500/year, which triggers a matching government contribution of up to $3500/year.
The Endowment 150 is a free grant of $150 to get started on an RDSP or to add to the fund. It will also be matched by the government for up to $450, bringing the total free funds to $600.
How to Qualify
To qualify for an RDSP, the applicant must:
- Pay taxes in Canada
- Have a Social Insurance Number
- Have the Disability Tax Credit
Age Criteria:
- Must open the RDSP by December 31 of the year in which the beneficiary turns 59.
- IMPORTANT NOTE: Must open the RDSP by December 31 of the year in which the beneficiary turns 49 in order to qualify for any of the government grants and bonds. The sooner you open an RDSP for your child, the more opportunity there is to accumulate grants and bonds. Younger is better! The earlier you open one, the sooner you can access funds without penalty.
Tools
- Access RDSP (help with the DTC/RDSP): 1-844-311-7526 or
- BCANDS Indigenous RDSP/DTC Navigation Support: https://www.bcands.bc.ca
- RDSP Calculator: https://www.rdsp.com/calculator/
- E150 Endowment Grant for BC Residents: https://www.rdsp.com/endowment-150/
- RDSP Webinars: https://planinstitute.ca/registered-disability-savings-plan/
By Family Support Institute of BC
