What is a Registered Disability Savings Plan?

A registered disability savings plan (RDSP) is a savings plan that is intended to help people or families save for long term financial security for a person that has a disability.

How do you qualify?

An RDSP may be opened by someone up to the age of 59 who qualifies for the Disability Tax Credit (DTC). They also have to be a Canadian resident with a valid Social Insurance Number (SIN). If the application is made by someone other than the DTC-qualified person, the applicant must have a valid SIN.

There can only be one RDSP for a given beneficiary, and only one beneficiary for each RDSP.

The parent or caregiver can contribute up to $200,000 with no annual contribution limit. Money can be put into the account by other people if the account holder has given written consent. The government will match up to a certain amount of every deposit made into the plan. RDSPs are not tax deductible.

People can contribute until:

  • Contributions to the plan reaches $200,000
  • The beneficiary no longer qualifies for the DTC
  • The beneficiary no longer lives in Canada
  • The beneficiary turns 59 years old
  • The beneficiary dies

Contact your branch and speak with any of our investment specialists for more information!