The Registered Disability Savings Plan (RDSP) is a long-term savings plan for people who qualify for the Disability Tax Credit, and the federal government adds to it: grants (CDSG) that match contributions at up to 300%, and bonds (CDSB) that need no personal contribution at all. This guide covers eligibility, the grant and bond, carry-forward, withdrawals, tax and how the plan interacts with other benefits.
Two pages go deeper: the RDSP withdrawal rules (LDAPs, DAPs, the holdback, shortened life expectancy) and the RDSP calculator, which projects grants, bonds and growth to a withdrawal age.
RDSP Pages
- RDSP withdrawal rules: lifetime and discretionary payments, the 10-year assistance holdback, withdrawal limits and how withdrawals are taxed.
- RDSP calculator: a year-by-year projection of contributions, grants, bonds and investment growth.
RDSP Overview
| Feature | Details |
|---|---|
| Lifetime contribution limit | $200,000 |
| Annual contribution limit | None (limited by lifetime max) |
| Government grants (CDSG) | Up to $3,500/year |
| Government bonds (CDSB) | Up to $1,000/year |
| Lifetime grant maximum | $70,000 |
| Lifetime bond maximum | $20,000 |
| Maximum age for grants/bonds | Paid until the end of the year the beneficiary turns 49 |
| Maximum age to open RDSP | Before age 60 |
| Tax on growth | Tax-deferred; withdrawals partially taxable |
| Impact on government benefits | Excluded from federal income-tested benefits such as the CCB, the Canada Groceries and Essentials Benefit and the OAS clawback; withdrawals can reduce provincial benefits in Quebec, New Brunswick and PEI |
Eligibility Requirements
| Requirement | Details |
|---|---|
| Residency | Canadian resident |
| SIN | Valid Social Insurance Number |
| DTC eligible | Must be approved for the Disability Tax Credit (Form T2201) |
| Age | Under 60 to open (until the end of the year they turn 59); grants and bonds until the end of the year they turn 49 |
| Who can open | The beneficiary if an adult with contractual capacity; otherwise a legal parent, guardian or other legal representative (a qualifying family member in some cases) |
| Who can contribute | Anyone, with the plan holder’s written permission |
Canada Disability Savings Grant (CDSG)
| Family Income (2026) | Matching Rate | On First | Plus | On Next | Max Annual Grant |
|---|---|---|---|---|---|
| $117,045 or less | 300% | $500 | + | 200% on $1,000 | $3,500 |
| Over $117,045 | 100% | $1,000 | $1,000 |
“Family income” is the parents’ or guardians’ combined income until the end of the year the beneficiary turns 18; from the next year on, it is the beneficiary’s own income plus a spouse’s, if any.
Optimal Contribution to Maximize Grants
| Income Level | Contribute | Grant Received | Effective Return |
|---|---|---|---|
| Family income up to $117,045 | $1,500/year | $3,500/year | 233% instant return |
| Family income over $117,045 | $1,000/year | $1,000/year | 100% instant return |
| Minimum to get max grant (family income up to $117,045) | $1,500 | $3,500 | 233% |
Canada Disability Savings Bond (CDSB)
| Family Income (2026) | Bond Amount | Contribution Required |
|---|---|---|
| $38,237 or less | $1,000 | $0 |
| $38,237–$58,523 | Partial (pro-rated) | $0 |
| Over $58,523 | $0 | N/A |
Bonds require NO contribution: the government deposits them automatically for low-income beneficiaries.
Carry-Forward Rules
| Rule | Details |
|---|---|
| Grant carry-forward | Up to 10 years of unused grants |
| Bond carry-forward | Up to 10 years of unused bonds |
| Max carry-forward grants per year | $10,500 |
| Max carry-forward bonds per year | $11,000 |
| Strategy | Entitlements build up for every DTC-eligible year even before a plan exists, but only the last 10 years can be claimed, so open the plan (and apply for the bond) before older years drop out |
Carry-Forward Example
| Scenario | Details |
|---|---|
| Person opens RDSP at age 30, DTC-eligible for the previous 10 years | 10 years of missed grant room, up to $35,000 (10 x $3,500/yr at low income) |
| Low income, contribute $4,500/year | Catch-up: receive up to $10,500/year in grants. That is the annual maximum and it includes the current year’s $3,500; contributing only $1,500 attracts just $3,500 |
| Years to clear the 10-year backlog | About 5 years: each catch-up year clears $7,000 of backlog ($10,500 minus the current year’s $3,500), oldest years first, so none fall out of the 10-year window |
| Grants after the backlog is cleared | Back to the normal $3,500/year until the $70,000 lifetime cap or age 49, whichever comes first |
RDSP Investments
| Investment Option | Available | Notes |
|---|---|---|
| GICs | ✅ | Safe, guaranteed |
| Mutual funds | ✅ | Common, but watch MER fees |
| ETFs | ✅ (at some providers) | Lower fees than mutual funds |
| Stocks | ✅ (at some providers) | More complex |
| Savings accounts | ✅ | Low return |
How to invest depends mostly on how long the money will stay in the plan. Grants and bonds paid in the last 10 years are subject to the holdback on withdrawal (below), so RDSP money is usually invested for the long term.
Where to Open an RDSP
RDSPs are offered by the major banks, some credit unions and some investment firms; Employment and Social Development Canada keeps the list of participating institutions. The list ranges from fund companies to brokerages, so what the plan can hold differs by provider. Comparing the investment choices and fees each allows is worth doing before opening one, since moving a plan later is possible but takes paperwork.
Withdrawal Rules
The RDSP withdrawal rules page covers each of these in full, including the LDAP formula (from the year the beneficiary turns 60, a minimum for the year’s total payments and a cap on each LDAP), primarily government-assisted plans and the shortened-life-expectancy option.
| Rule | Details |
|---|---|
| Disability Assistance Payments (DAPs) | Discretionary withdrawals at any time |
| Lifetime Disability Assistance Payments (LDAPs) | Must start by the end of the year the beneficiary turns 60; paid at least once a year until the plan ends or the beneficiary dies |
| 10-year assistance holdback amount | $3 of grants/bonds repaid for every $1 withdrawn (if grants received in last 10 years) |
| Taxable amount | Government portions (grants, bonds, growth) are taxable |
| Non-taxable amount | Your original contributions are not taxable |
| Timing | Withdrawals within 10 years of receiving grants or bonds trigger the holdback |
Withdrawal Taxation
| Component | Tax Treatment on Withdrawal |
|---|---|
| Your contributions | Tax-free |
| Government grants (CDSG) | Taxable as income |
| Government bonds (CDSB) | Taxable as income |
| Investment growth | Taxable as income |
RDSP vs Other Accounts
| Feature | RDSP | TFSA | RRSP |
|---|---|---|---|
| Government matching | ✅ Up to $3,500/year | ❌ | ❌ |
| Government bonds (free money) | ✅ Up to $1,000/year | ❌ | ❌ |
| Tax-free growth | Tax-deferred | ✅ Tax-free | Tax-deferred |
| Tax on withdrawals | Partially taxable | Tax-free | Fully taxable |
| Withdrawals count toward the OAS clawback | ❌ No | ❌ No | ✅ Yes |
| Contribution limit | $200,000 lifetime | $7,000/year | 18% of earned income, up to an annual maximum |
| DTC required | ✅ Yes | ❌ No | ❌ No |
How the RDSP Affects Other Benefits
The federal government excludes RDSP income from the calculation of income-tested benefits such as the Canada Child Benefit and the Canada Groceries and Essentials Benefit, and from the OAS clawback. Opening or contributing to an RDSP does not affect federal or provincial benefits.
Provinces set their own rules for withdrawals. Most fully exempt RDSP withdrawals from social assistance and disability benefit calculations, but Quebec, New Brunswick and Prince Edward Island apply a partial exemption, so a large withdrawal there can reduce a provincial benefit. The provincial disability program can confirm how a withdrawal is treated before it is made.
RDSP Growth Example
The RDSP calculator runs this kind of projection for any age, contribution, family income and return. A fixed example:
Assuming $1,500/year in personal contributions deposited at the start of each year and a family income low enough for the full grant and bond, the $3,500/year CDSG and $1,000/year CDSB continue until their $70,000 and $20,000 lifetime caps (the grant cap is reached after 20 years and the bond cap after 20 years), with 6% annual growth:
| Year | Contribution | Grant | Bond | Balance (6% return) |
|---|---|---|---|---|
| 1 | $1,500 | $3,500 | $1,000 | $6,360 |
| 5 | $1,500/yr | $3,500/yr | $1,000/yr | $35,850 |
| 10 | $1,500/yr | $3,500/yr | $1,000/yr | $83,830 |
| 20 | $1,500/yr | $3,500/yr | $1,000/yr | $233,960 |
| 30 | $1,500/yr | None (lifetime cap reached) | None (lifetime cap reached) | $439,940 |
With only $1,500/year in personal contributions, the RDSP can grow to roughly $440,000 over 30 years through government grants, bonds, and compound growth. Actual results depend on investment returns, timing of deposits, and family income (which determines grant/bond eligibility each year).
Common RDSP Mistakes
| Mistake | Better Approach |
|---|---|
| Not opening RDSP (even if can’t contribute) | Open early and apply for the bond: only the last 10 years of entitlements can be caught up |
| Contributing more than needed for max grant | Only need $1,500/year (family income up to $117,045) or $1,000/year (above it) |
| Withdrawing within 10 years of grants | Wait 10+ years to keep all government money |
| Not applying for DTC | Eligibility depends on how an impairment affects daily activities, not on a specific diagnosis, so it can be worth checking the criteria |
| Not planning for the RDSP at death | The plan is paid to the beneficiary’s estate after the holdback is repaid, so the beneficiary’s will (or intestacy rules) decides where it goes |
Related Topics
- RDSP withdrawal rules
- RDSP calculator
- Disability Tax Credit (DTC): application guide
- Disability insurance in Canada
- Canadian Dental Care Plan
- FHSA hub: tax-free savings for a first home
- RESP hub: government-matched education savings
- TFSA guide: tax-free savings for any goal
- RRSP guide: tax-deferred retirement savings
Browse All RDSP Guide Canada 2026: Registered Disability Savings Plan Explained Articles
Browse all 2 articles in this section.
Sources
The figures and rules on this page come from these sources, last checked against them on August 29, 2026. How we check facts.
- Canada Revenue Agency: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE
- Canada Revenue Agency: How contributions affect your RRSP deduction limit
- Employment and Social Development Canada: Registered Disability Savings Plan: how much you could get in grants and bonds