RDSP – Registered disability savings plan

This savings plan allows you to accumulate savings and ensure long-term financial security for a person with a severe disability (yourself, your children, a family member or any other loved one). The individual must be under 60 years of age and be eligible for the disability tax credit (DTC) under Canada’s Income Tax Act.

Enrollment in an RDSP allows you to deposit any type of savings and investments, whether they are deposits or mutual funds.

Advantages of an RDSP

The beneficiary of an RDSP can use the funds before retirement age to meet specific needs such as home care or domestic help.

Two government grants, including the Canadian Disability Savings Bond, can enhance the amounts invested. The RDSP can also supplement the coverage of any Canadian resident under 60 who is already eligible for the disability tax credit (DTC), which is overseen by the Canada Revenue Agency (form T2201).

However, the disability must last one year or more, and a doctor must attest to its severity.