RDSP Investing in Possibilities: Your Path to Financial Independence with RDSP

In Canada, the RDSP stands for Registered Disability Savings Plan. It’s a savings program designed to help individuals with disabilities and their families save for long-term financial needs, particularly during the beneficiary’s retirement years. The RDSP comes with various benefits and incentives to encourage saving for individuals who are eligible for the Disability Tax Credit (DTC).

RDSP Unveiled: Your Key Facts and Figures


Contributions can be made by the beneficiary, their family members, friends, or even charitable organizations. There is no annual contribution limit, but there is a lifetime contribution limit set for each beneficiary.

Government Grants and Bonds

Beneficiaries may be eligible for government grants and bonds based on their family income and contributions made to the RDSP.

The Canada Disability Savings Grant (CDSG) matches contributions made to the RDSP, while the Canada Disability Savings Bond (CDSB) provides funds to lower-income individuals.

Tax-Deferred Growth

Similar to an RRSP, the investments within an RDSP grow on a tax-deferred basis. Taxes are paid when funds are withdrawn from the plan.


Withdrawals from the RDSP are referred to as Disability Assistance Payments (DAPs).DAPs are taxable in the hands of the beneficiary and are generally considered as taxable income.

Long-Term Savings

The RDSP is intended to help individuals with disabilities save for the long term, including their retirement years.


To open an RDSP, the beneficiary must be eligible for the Disability Tax Credit (DTC).

The beneficiary must be a Canadian resident.

Lifetime of the Plan:

The RDSP can remain open for the lifetime of the beneficiary. However, contributions cannot be made after the beneficiary turns 59, and the RDSP must be closed by the end of the year the beneficiary turns 60.

Is a RDSP Right for You?

If you’re a Canadian resident eligible for the Disability Tax Credit (DTC), an RDSP could be the perfect tool to secure your long-term financial well-being. With benefits like tax-deferred growth, government grants, and bonds, the RDSP offers a unique pathway to saving for the future needs of individuals with disabilities. Evaluate your eligibility, financial goals, and aspirations to determine if the RDSP aligns with your journey towards greater financial security and independence