The Registered Disability Savings Plan (RDSP) is a federal program intended to help individuals with disabilities and/or their families save for the future. The lifetime contribution limit for an RDSP is $200,000 and withdrawals must begin before the end of the year that the beneficiary turns 60.
What is the benefit?
If you have an RDSP, you can apply for the Canadian Disability Savings Grant or Bond.
The Canadian Disability Savings Grant is a matching grant of up to 300% of your contributions, depending on the beneficiary’s family income. The maximum grant is $3500 per year, to a lifetime maximum of $70000. Government grant payments will end the year the beneficiary turns 49.
If you family income is less than $91,831, the grant will be 3:1 for the first $500 contributed, and 2:1 for the next $1000. If you family income is greater than $91,831, the grant is 1:1 for up to $1000.
The Canadian Disability Savings Bond is a contribution of up to $1000 per year for low- and modest-income Canadians. No contribution by the beneficiary is required to receive this bond, if their family income meets qualifying levels. The lifetime maximum for this bond contribution is $20000, and contributions end the year the beneficiary turns 49. For the full $1000 contribution, family income must be $30000 or less.
In order to qualify for the grant or bond, the beneficiary (or their caregivers, if a minor) must have filed tax returns for the two previous years.
How do I open an RDSP and apply for the Canadian Disability Savings Grant or Bond?
To open an RDSP, please contact your preferred participating financial institution from the list below (provided by the Government of Canada website):
- ATB Securities Inc.
- Bank of Montreal
- Bank of Nova Scotia
- Central 1 Credit Union
- Central 1 Trust Company
- Community Trust Company
- Investors Group Trust Co. Ltd.
- Fonds d’investissements FMOQ inc. (French only)
- Mackenzie Financial Corporation
- RBC Royal Bank
- TD Waterhouse Canada Inc.
- Natcan Trust Company
Your grant or bond applications will also be processed by the financial institution holding your RDSP. A copy of the application form can be obtained from your bank, or also found here.