The Registered Disability Savings Plan (RDSP) is a long-term savings program for Canadians with severe and prolonged disabilities. The money in the plan grows tax-free, and the government also provides grants and bonds. The government provides additional support for families with low to modest incomes. This may include an enhanced Canada Disability Savings Grant and the Canada Disability Savings Bond.
When you withdraw savings from a Registered Disability Savings Plan, payments you receive may also be taxable.
Money paid out of an RDSP does not affect your eligibility for federal benefits such as Old Age Security and the Guaranteed Income Supplement. All provinces and territories fully or partially exempt RDSP assets and income when determining eligibility for provincial financial assistance programs. Contact your provincial or territorial government for more information.
Learn more about RDSPs in the publication Registered Disability Savings Plan: Helping People with Disabilities Save for the Future.
Grants and bonds
The federal government also provides savings grants and bonds for RDSPs for people with disabilities. The RDSP grant or bond must usually remain in an RDSP for at least 10 years before you can make a withdrawal; otherwise all or a portion of it will have to be repaid to the government.
Canada Disability Savings Grant
When you contribute to an RDSP, the Government of Canada will contribute as well with a Canada Disability Savings Grant. The amount depends on your own contribution and your family income.
Canada Disability Savings Bond
The government provides an annual Canada Disability Savings Bond, up to a specified lifetime maximum, for households with low to modest income that might not be able to afford any contributions at all.