The Registered Disability Savings Plan (RDSP) is Canada's most powerful long-term savings vehicle for people with disabilities. Combine personal contributions, family contributions, federal grants of up to $3,500/year, and federal bonds of up to $1,000/year — all growing tax-free inside the plan. An RDSP started early can accumulate hundreds of thousands of dollars for long-term financial security.
To be an RDSP beneficiary you must: (1) be a Canadian resident, (2) have a valid Social Insurance Number, (3) be under age 60 when opening the account, and (4) be eligible for the Disability Tax Credit (DTC). If DTC eligibility lapses, the RDSP may need to be closed within a set period.
The plan holder is the person who manages the RDSP. This can be the beneficiary (if they can enter into a contract), their legal parent, guardian, or a public department/agency. Spouses and common-law partners can also be plan holders in certain provinces. Anyone can contribute to the RDSP once it is open.
The federal government matches contributions through the CDSG. The matching rate depends on family net income:
| Family Net Income | On first $500 contributed | On next $1,000 contributed | Max annual CDSG |
|---|---|---|---|
| Up to $36,502 | 300% = $1,500 | 200% = $2,000 | $3,500 |
| $36,503–$106,717 | 100% = $500 | 100% = $1,000 | $1,500 (on $1,500 contrib) |
| Over $106,717 | 100% on first $500 = $500 | — | $500 |
The CDSG lifetime maximum is $70,000. Unused grant room carries forward — you can catch up on past years' grants (up to 10 years retroactively after DTC approval) by contributing larger amounts in a single year.
For lower-income Canadians, the government deposits up to $1,000/year in a CDSB — no contribution required. Family net income must be under $36,502 for the full $1,000; partial bond available up to $106,717. The CDSB lifetime maximum is $20,000. See our detailed CDSB guide.
LDAPs are recurring annual withdrawals that must begin by December 31 of the year the beneficiary turns 60. The maximum annual LDAP is calculated using an annuity formula based on total plan assets and the beneficiary's age. Minimum LDAPs apply once withdrawals begin. Withdrawals are included in the beneficiary's taxable income (not the contributor's).
DAPs are one-time or irregular withdrawals. Before age 60, DAPs may trigger the "assistance holdback amount" repayment rule: if the RDSP received more government money than personal contributions in the past 10 years, withdrawing $1 requires repaying $3 of government grants/bonds (max all grants received in last 10 years). Plan withdrawals carefully to avoid triggering large repayments.
Contributions to an RDSP are NOT tax-deductible. Investment growth inside the RDSP is tax-sheltered. When withdrawn, the government contributions and earnings are included in the beneficiary's income — but personal contributions come out tax-free. Since beneficiaries often have lower incomes, the tax impact of RDSP withdrawals is typically modest.
In most provinces, RDSP assets and income do NOT count toward social assistance eligibility or payment calculations. Ontario's ODSP specifically exempts RDSP balances and income from asset/income tests. This makes the RDSP especially valuable for people receiving ODSP or other provincial disability assistance.
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Get KOHO Free — Code 45ET55JSYAInformational only. Not financial or tax advice. Verify current figures with ESDC, CRA, or a qualified financial advisor. Last updated March 2026.