The RDSP is a savings plan designed for the long-term financial stability of people with disabilities. As such, parents of people with disabilities can also open and contribute to their child’s RDSP. In addition to the savings plan, contributions may be supplemented by a Canada Disability Savings Grant and Canada Disability Savings Bond.
ILSM is pleased to promote the Government of Canada’s Registered Disability Savings Plan (RDSP). It aligns with IL philosophy by allowing people with disabilities to participate in economic life, a piece of full citizenship in Canadian society.
What is it?
The RDSP is a savings plan designed for the long-term financial stability of people with disabilities. As such, parents of people with disabilities can also open and contribute to their child’s RDSP. In addition to the savings plan, contributions may be supplemented by a Canada Disability Savings Grant and Canada Disability Savings Bond.
Information
There are three main places to get information regarding the RDSP:
- Service Canada
- The financial institution of your choice.
Contributions are not tax-deductible and are not included in income when paid out of an RDSP.
Canada Disability Savings Grant - Depending on the beneficiary’s family income and contribution level, the Government may grant up to $3 for every $1 in contributions received by an RDSP in a year, to a maximum of $3,500
Canada Disability Savings Bond - Depending on the beneficiary’s family income, the Government of Canada may contribute up to $1,000 each year.
This plan allows the beneficiary to accumulate funds by means of deposits and tax-deferred growth.
A RDSP can hold many types of investments, which may include guaranteed investment certificates (GICs), mutual funds and savings accounts.
Who is eligible?
Any person who is:
- Eligible for the Disability Tax Credit;
- A Canadian resident; and
- Under 60 years of age.
Note: If the person is a minor, their parent or legal representative may establish the RDSP for their
benefit.
How to apply?
There are currently three financial institutions that offer the RDSP:
Information files on the Registered Disability Savings Program
