RDSP

An RDSP stands for Registered Disability Savings Plan. It’s a long-term savings plan created by the Canadian government to help people with disabilities and their families save for the future—with generous government support.​

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Key Features of RDSP:

1. Tax-Sheltered Growth:
   •    Like an RRSP or RESP, investment growth is tax-free until withdrawal.

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2. Government Grants and Bonds:
   •    Canada Disability Savings Grant (CDSG):
   •    Government matches up to 300% depending on family income
   •    Up to $3,500/year, with a lifetime maximum of $70,000
   •    Canada Disability Savings Bond (CDSB):
   •    Up to $1,000/year for low-income families—no personal contribution required
   •    Lifetime max of $20,000

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3. Contribution Limit:
   •    Lifetime contribution limit: $200,000
   •    No annual limit
   •    Contributions are not tax-deductible

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4. Eligibility:
   •    Must be under age 60
   •    Must be a Canadian resident with a valid SIN
   •    Must be eligible for the Disability Tax Credit (DTC)

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5. Withdrawals:
   •    Withdrawals are a mix of:
   •    Your contributions (not taxed)
   •    Grants, bonds, and growth (taxed in the beneficiary’s hands—usually low or no tax)​

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Why it matters:

RDSPs are a powerful tool to ensure people with disabilities can have a secure financial future—especially with free money from the government.