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 |
Must be received before age 49 |
| Maximum age to open RDSP |
Before age 60 |
| Tax on growth |
Tax-deferred; withdrawals partially taxable |
| Impact on government benefits |
None — RDSP withdrawals don’t affect OAS, GIS, etc. |
Eligibility Requirements
| Requirement |
Details |
| Residency |
Canadian resident |
| SIN |
Valid Social Insurance Number |
| DTC eligible |
Must have approved Disability Tax Credit (T2201) |
| Age |
Under 60 to open; under 49 to receive grants/bonds |
| Who can open |
Beneficiary or their legal representative |
| Who can contribute |
Anyone (beneficiary, family, friends) |
Canada Disability Savings Grant (CDSG)
| Family Income (2025) |
Matching Rate |
On First |
Plus |
On Next |
Max Annual Grant |
| Under ~$106,717 |
300% |
$500 |
+ |
200% on $1,000 |
$3,500 |
| Over ~$106,717 |
100% |
$1,000 |
|
|
$1,000 |
“Family income” is the beneficiary’s income (and spouse’s) if over 18, or the parent’s income if the beneficiary is under 18.
Optimal Contribution to Maximize Grants
| Income Level |
Contribute |
Grant Received |
Effective Return |
| Low/moderate income |
$1,500/year |
$3,500/year |
233% instant return |
| Higher income |
$1,000/year |
$1,000/year |
100% instant return |
| Minimum to get max grant (low income) |
$1,500 |
$3,500 |
233% |
Canada Disability Savings Bond (CDSB)
| Family Income (2025) |
Bond Amount |
Contribution Required |
| Under ~$35,466 |
$1,000 |
$0 |
| $35,466-$54,677 |
Partial (pro-rated) |
$0 |
| Over ~$54,677 |
$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 |
Open RDSP even if you can’t contribute — clock starts for carry-forward |
Carry-Forward Example
| Scenario |
Details |
| Person opens RDSP at age 30 (was DTC-eligible since 20) |
10 years of missed grants |
| Low income, contribute $1,500/year |
Catch-up: receive up to $10,500/year in grants |
| Years to catch up |
6-7 years |
| Total catch-up grants |
~$70,000 potential |
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 |
Recommended Approach
| Risk Tolerance |
Allocation |
Example |
| Conservative |
30% equity / 70% fixed |
VCNS or balanced fund |
| Moderate |
60% equity / 40% fixed |
VBAL or similar |
| Aggressive (young, 20+ years to withdrawal) |
80% equity / 20% fixed |
VGRO or similar |
Where to Open an RDSP
| Provider |
Investment Options |
Minimum |
Notes |
| BMO |
Mutual funds, GICs |
$0 |
Good fund selection |
| CIBC |
Mutual funds, GICs |
$0 |
Branch support |
| RBC |
Mutual funds, GICs |
$0 |
Branch support |
| TD |
Mutual funds, GICs, e-Series |
$0 |
e-Series = low-cost |
| National Bank |
Mutual funds |
$0 |
|
| Mackenzie Investments |
Mutual funds |
$0 |
|
Few brokerages offer self-directed RDSP with ETFs. TD’s e-Series funds are a low-cost alternative.
Withdrawal Rules
| Rule |
Details |
| Disability Assistance Payments (DAPs) |
Discretionary withdrawals at any time |
| Lifetime Disability Assistance Payments (LDAPs) |
Must start by age 60; annual payments until death |
| 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 |
| Best strategy |
Wait 10+ years after last grant/bond before withdrawing |
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 |
| Affects GIS/OAS |
❌ No |
❌ No |
✅ Yes |
| Contribution limit |
$200,000 lifetime |
$7,000/year |
18% of income |
| DTC required |
✅ Yes |
❌ No |
❌ No |
RDSP Growth Example
| 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 |
$40,300 |
| 10 |
$1,500/yr |
$3,500/yr |
$1,000/yr |
$96,400 |
| 20 |
$1,500/yr |
$3,500/yr |
— |
$228,900 |
| 30 |
$1,500/yr |
— |
— |
$360,000+ |
With only $1,500/year in personal contributions, the RDSP can grow to $360,000+ through government grants, bonds, and compound growth.
Common RDSP Mistakes
| Mistake |
Better Approach |
| Not opening RDSP (even if can’t contribute) |
Open immediately — starts carry-forward clock and bond eligibility |
| Contributing more than needed for max grant |
Only need $1,500/year (low income) or $1,000/year (high income) |
| Withdrawing within 10 years of grants |
Wait 10+ years to keep all government money |
| Not applying for DTC |
Apply even if unsure — many conditions qualify |
| Investing too conservatively for young beneficiaries |
20+ year time horizon can handle more equity exposure |
| Not naming a beneficiary |
Plan for what happens to RDSP at death |
→ Back to: Personal Finance Guide