Register a disability savings plan - Overview

1. Overview

A registered disability savings plan (RDSP) is a trust arrangement that is registered with the Canada Revenue Agency. Its main purpose is to give financial security to an RDSP beneficiary after they turn 60 years of age.

An eligible person or organization can:

• open an RDSP for an eligible beneficiary’s benefit with a participating financial institution
• contribute up to $200,000 to the RDSP until the end of the year the beneficiary turns 59 years of age
• apply, on behalf of the beneficiary, for Government of Canada disability savings grant and bond incentives.  For details: Canada disability savings grants and bonds

All contributions, rollovers, grants, bonds, and investment earnings grow tax-free while they are in an RDSP. Grants, bonds, rollovers, and investment earnings are included in the beneficiary’s income for tax purposes when withdrawn.