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Registered Disability Savings Plan (RDSP)

The Registered Disability Savings Plan is an effective savings plan for Canadians with disabilities to save for the future. The RDSP is designed for long term savings helping Canadians with disabilities have financial security.

What is the Benefit of an RDSP?

  • How much the government contributes to the RDSP:
    - For every $1 put in an RDSP account, the federal government will match it (if your family income is below $97,069) with up
       to $3. (Grant)
    - For people living on a low income (less than $31,711) the federal government will invest $1000 each year for 20 years. (Bond)
  • People living on an income between $31,711 and $48,535 can still receive a partial bond.
  • Anyone can contribute to an RDSP.
  • An RDSP can provide one of the best returns on an investment today, helping to grow your money, and potentially triple in size. 
  • People with disabilities can choose what to do with the money when it comes out - there are no restrictions on how RDSP withdrawals are spent.
  • The Registered Disability Savings Plan is exempt from most provincial disability and income assistance benefits. The RDSP does not get clawed back and it does not reduce disability benefits payments.

             RDSP Fact Sheet

Reasons to Open a RDSP

  • An RDSP helps you to save financially for the future, plus you do not have to pay tax on the earnings.
  • The federal government will contribute as much as $90,000 to your account.
  • Contributions can be matched, based on family net income, with up to $3,500 a year in CDSG and up to $1,000 a year in CDSB.
  • Anyone can contribute to a RDSP with the written consent of the account holder.
  • If you have a low income and cannot invest yourself, the government will still save for you.
  • A RDSP will not affect your disability benefit.
  • There are no restrictions - you can spend the money on anything you choose.
  • When you close a RDSP, the contributions and investments gained are yours. 

Do I Qualify?

To open an RDSP, you must:

  • Be under the age of 60*
  • Live in Canada.
  • Have a Social Insurance Number (SIN #).
  • Qualify for the disability tax credit. (Click here)

Note: To receive the Canada Disability Savings Bond and the best matching federal government contributions from the Canada Disability Savings Grant (CDSG), you are required to file your income tax for the preceding 2 years.


For information on the eligibility criteria for the disability tax credit, click here.


For more information on the disability tax credit, click here.


*The last year an RDSP can be opened is the year the person with the disability turns 59.

What A RDSP Can Do For You

Provide a powerful vehicle for saving.

The RDSP is a powerful tool for long-term financial security. Someone saving $1500/year for over 30 years, may find their RDSP worth nearly half a million dollars. Monthly payments out of the plan would start at about $850 and grow annually.


Recognize family contributions.

Anyone can contribute to an individual's RDSP: family, friends, neighbours, charities, foundations, organizations, etc. The federal government encourages these contributions by matching each dollar contributed with up to $3.


Top 4 Tips to Maximize Savings

  1. Start savings early. Make it automatic by enrolling in a pre-authorized chequing program.
  2. Contribute every year to get the maximum annual Canada Disability Savings Grant and Canada Disability Savings Bond, if applicable.
  3. Plan your withdrawals to avoid federal grant and bond repayments.
  4. Carry forward of Canada Disability Saving Grant and Canada Disability Savings Bond. 

Network of Disability Organizations in Newfoundland and Labrador

How Does the RDSP Work?

The Registered Disability Savings Plan helps people with disabilities save for the future. If you open an RDSP and make annual contributions to the account, the government will make additional contributions. Even if you are unable to afford to make contributions to your RDSP, the government may still make contributions, based solely on your income.

The amount that you can collect from the Government over a lifetime is a total of $90,000 ($20,000 in bonds + $70,000 in grants).


(RDSP) Canada Disability Savings Bonds

The Bond is solely based on family income.

• If your family income is less-than or equal to $31,711* the government contributes $1,000 each year.

• If your family income is between $31,711* and $48,535* the government contributes a pro-rated amount of the $1,000 Bond each year.

• If your family income is more than $48,535*, then no Bond is paid.


The government continues making Bond contributions until they have contributed $20,000 or until and including the year the person turns 49 years of age.


Family income is based on the parents’ income until the year the person with the disability turns 19 years of age. Once the person with the disability reaches the year they turn 19, Government Grant and Bond contributions are then based on their own income (provided they are single). If the person is married or in a common-law relationship, then family income is based on the couple’s collective income.


*Income thresholds are for 2019 and are indexed to inflation.

(RDSP) Canada Disability Savings Grants

With RDSP contributions, the federal government matches your contributions based upon the following criteria:

When Family Net Income is less-than or equal to $97,069*

• With the initial $500 contributed each year, the government will put in $1,500. Matching $3 for each $1, for the first $500 that you contribute. You deposit $500 and the government will deposit $1,500.

• For the next $1,000 you contribute, the government deposits 2 dollars for every 1 dollar. You deposit another $1,000 and the government will deposit an additional $2,000.


When Family Net Income is Greater than $97,069*

• For the initial $1,000 contributed every year, the government matches dollar for dollar. You put in $1,000 and the government will put in $1,000.

* The government continues making Grant contributions until you’ve contributed $70,000 or until the year the person turns 49 years of age.


How does the RDSP withdrawal work?

RDSP withdrawals must begin by the end of the year you turn age 60. You may access funds from your RDSP earlier, but please note that due to the 10-year rule once a withdrawal of any amount is made, $3 worth of federal grants and bonds paid into the RDSP within the previous 10 years have to be repaid for every $1 withdrawn. The government money has to be secured in the plan for 10 years before being withdrawn, otherwise some will have to be paid back to the government.  

Withdrawals will consist of non-taxable contributions, taxable Government monies and taxable growth.


8 things to know about RDSPs

1. The beneficiary is the person with the disability who will receive the money in the future.

2. The plan holder is the person who opens and manages the RDSP. The beneficiary can also be the plan holder.

3. There is no annual limit on contributions but the lifetime contribution limit for a beneficiary is $200,000.

4. Contributions can be made to the plan until the beneficiary turns 59.

5. Contributions are not tax deductible, but your savings grow tax free. There is no tax on the investment earnings, as long as they stay in the plan.

6. Until age 49, the beneficiary may be eligible for government contributions to the RDSP under the Canada Disability Savings Grant, and

Canada Disability Savings Bond.

7. RDSP savings can be held in a variety of investments, depending on where the plan is opened.

8. The beneficiary must start taking regular payments from the plan by age 60.


Frequently Asked Questions regarding the RDSP.


How Do I Open an Registered Disability Savings Plan? 

1. Ensure that all eligibility criteria have been met:

  • be under 60 years of age (if you are 59, you must apply before the end of the calendar year in which you turned 59.) *
  • be a Canadian resident
  • be eligible for the Disability Tax Credit, and
  • have a Social Insurance Number (SIN)

       * Remember that the last year to receive any government grants/bonds is December 31 of the calendar year in which you turn 49.


2. Identify who will be the holder:

If the beneficiary is younger than the age of a majority, a legal parent, legal representative, or public department has to be the holder of the plan. To open an RDSP, SIN of both the beneficiary and holder has to be provided.


If the beneficiary is above the age of majority, the holder will generally be the beneficiary unless they are contractually incapable. In such a case, a legal parent, spouse, legal representative, or public department can be the holder.


3. Contact us at Hancock Financial Solutions Inc. to open an RDSP.


The RDSP will be opened through Mackenzie Investments, to learn more about them and the RDSP check out the following link: https://www.mackenzieinvestments.com/en/products/rdsp

What you can expect from us ...

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We believe in the value of the RDSP for people with disabilities and their families. 


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RDSPs can sound complicated, we want to make it simple and easy to understand. 

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We will meet one-on-one with the you, in the comfort of your own surroundings if preferable.

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We have knowledgeable staff who understand how RDSPs work and can effectively share the knowledge required for our clients to make informed decisions.

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We offer long-term investment advice on the value of investing in asset classes that may not be accessible or recommended to people who are setting up RDSPs. 

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You will have direct contact with the advisor and support staff at all times via email, social media platforms, and a toll-free phone number

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When necessary, we will engage legal, estate, and tax planning professionals to help achieve long-term financial objectives. 

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Each person we have the opportunity to work with is someone with whom we hope to build a long lasting friendship. 

We anticipate and look forward to building those relationships. 

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