Canada Disability Savings Program (RDSP)

Canada Disability Savings Program (RDSP)

The Canada Disability Savings Program (RDSP) is a government initiative introduced in 2008 to help individuals with disabilities save for their long-term financial security. It is a registered savings plan that allows individuals with disabilities to contribute and receive various grants and bonds from the government.


1. What is the purpose of the Canada Disability Savings Program?
The main purpose of the Canada Disability Savings Program is to encourage individuals with disabilities and their families to save for their future financial needs. It aims to provide long-term financial security and improve the overall quality of life for people with disabilities.

2. Who is eligible to open a RDSP?
To be eligible for a RDSP, the individual must be a resident of Canada, have a valid Social Insurance Number (SIN), be eligible for the Disability Tax Credit (DTC), and be under the age of 60. Parents or guardians can open an RDSP on behalf of a beneficiary who meets these criteria.

3. What are the benefits of opening a RDSP?
The benefits of opening a RDSP include the potential for government contributions in the form of grants and bonds, tax-sheltered growth on investments, and the ability to withdraw funds tax-free. Additionally, RDSP funds do not impact eligibility for government benefits or tax credits.

4. How do government contributions to a RDSP work?
The government provides contributions to RDSPs through the Canada Disability Savings Grant and the Canada Disability Savings Bond. The grant matches contributions made by the beneficiary and their family, while the bond provides annual contributions for low-income individuals.

5. Can funds be withdrawn from a RDSP?
Yes, funds can be withdrawn from a RDSP at any time, but they are subject to specific rules and restrictions. Withdrawals are called Disability Assistance Payments (DAPs) and must be reported as taxable income for the beneficiary in the year they are received.