An RDSP is a long-term savings plan for Canadians with a disability to save on a tax-deferred basis for their future
A person is eligible to be a beneficiary on an RDSP if they:
- Are eligible for the Disability Tax Credit (DTC)
- Have a valid SIN
- Are 59 or younger
- Are a Canadian resident
When you make a contribution into your or your loved one's RDSP, the government will match your contribution through grants and bonds.
How much the government contributes depends on the beneficiary's household income.
You can receive up to $3,500 per year, up to a maximum of $70,000 total through the CDSG.
You can receive up to $1,000 per year and up to a maximum of $20,000 total through the CDSB.
While there is no annual limit for personal contributions, there is a lifetime limit of $200,000.
There is a Holder and a Beneficiary in each RDSP account. The Holder is the person who opens, manages, and makes contributions into the account.
The Beneficiary is the person with the disability and recipient of the funds in the account.
The Holder of an RDSP can also be the Beneficiary, or the Holder can be different from the Beneficiary and manage it on their behalf.
You can open and make contributions into an RDSP account up until the year the beneficiary turns 59, however, the government will stop matching personal contributions with grants and bonds in the year the beneficiary turns 49.
The year that the beneficiary turns 60, they must start receiving regular payments called Lifetime Disability Assistance Payments (LDAPs) at least annually.