RDSP Canada 2025 — Registered Disability Savings Plan Guide
The Registered Disability Savings Plan (RDSP) is a long-term savings plan designed to help Canadians with disabilities and their families save for the future. The Canadian government provides generous grants and bonds — potentially worth up to $90,000 in government contributions over a lifetime. To qualify, you must have an approved Disability Tax Credit (DTC) certificate.
RDSP Key Facts
| Parameter | Amount / Rule |
|---|
| Lifetime contribution limit | $200,000 |
| Annual contribution limit | None |
| CDSG lifetime maximum | $70,000 |
| CDSB lifetime maximum | $20,000 |
| Total potential government benefit | $90,000 |
| Age to stop receiving grants/bonds | December 31 of year beneficiary turns 49 |
| Age to stop contributions | December 31 of year beneficiary turns 59 |
| Must start withdrawals by | December 31 of year beneficiary turns 60 |
Canada Disability Savings Grant (CDSG)
The CDSG is a matching grant based on your contributions and family income. The government matches contributions at rates of 100%, 200%, or 300%:
- Family net income ≤ $36,502: 300% on first $500 ($1,500) + 200% on next $1,000 ($2,000) = max $3,500/year
- Family net income $36,502–$87,123: 200% on first $500 ($1,000) + 100% on next $1,000 ($1,000) = max $2,500/year
- Family net income above $87,123: 100% on first $1,000 = max $1,000/year
Canada Disability Savings Bond (CDSB)
The CDSB is paid to low-income Canadians with disabilities with NO contribution required:
- Family net income ≤ $36,502: $1,000/year
- Family net income $36,502–$55,197: Partial bond (phases out)
- Above $55,197: No bond
Many eligible Canadians are missing thousands of dollars in CDSB simply by not having an RDSP open. Even if you can't contribute, open an RDSP to claim the bond.
10-Year Holdback Rule: Any CDSG and CDSB received in the last 10 years must be repaid if you make withdrawals (called DAPs — Disability Assistance Payments). Plan withdrawals carefully to avoid triggering repayment.
RDSP Withdrawals (Disability Assistance Payments)
Withdrawals from an RDSP are called Disability Assistance Payments (DAPs). Rules:
- You can make DAPs at any time, but early withdrawals trigger the 10-year holdback repayment
- Annual DAPs cannot exceed 10% of the RDSP value if grants/bonds were received in the last 10 years (unless using Lifetime Disability Assistance Payments)
- LDAPs (Lifetime DAPs) must begin by age 60
- DAPs are taxable to the beneficiary (contributions are not taxed again; grants, bonds, and growth are taxable)
Who Manages the RDSP?
An RDSP can be opened and managed by:
- The beneficiary themselves (if they have contractual capacity)
- A parent or guardian (for minors)
- A legal guardian or authorized entity for adults with diminished contractual capacity
Simple Banking for Canadians with Disabilities
KOHO offers accessible, no-fee banking that's easy to use. Complement your RDSP savings with a KOHO account for everyday spending and cashback.
Open KOHO — Use Code 45ET55JSYA