What are the key features of an RDSP?

There are various ways to invest in your long-term savings, and for Canadians with disabilities and their families, there is the option of a Registered Disability Savings Plan (RDSP). This particular account has certain eligibility and contribution considerations and includes government assistance and tax benefits. This video outlines these key characteristics.

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Video transcript

The Registered Disability Savings Plan (RDSP) is a long-term savings vehicle that helps Canadians with disabilities and their families prepare for the future. Here are some key features of an RDSP.


Someone can be designated the beneficiary of an RDSP if they are approved for the disability tax credit, have a SIN, are a resident of Canada and are under the age of 60.


Anyone with written permission from the plan holder can contribute to the plan, including family members, friends or the beneficiary themselves. There is no annual limit on how much you can contribute to an RDSP, but there is a lifetime limit of $200,000.

Government grants & bonds

One advantage of an RDSP is the availability of government grants and bonds. When you open an RDSP, you can apply for the Canada Disability Savings Grant (CDSG). The CDSG can award you a matching grant of up to $3,500 a year, with a lifetime limit of $70,000. You can also benefit from the Canada Disability Savings Bond. If eligible, you can receive up to $1,000 annually, depending on family income.

Tax benefits

The investment grows in an RDSP on a tax-deferred basis. When the funds are withdrawn, the investment gains will be taxed in the hands of the beneficiary, typically at a lower tax rate due to their potentially lower income.

An RDSP provides Canadians with disabilities and their families an opportunity to save for the future with the added benefit of government grants and bonds and tax-deferred growth. 

Speak to your financial advisor to learn more.