A savings account intended to help disabled individuals who are receiving the disability tax credit (DTC) save for their long term financial security
An RDSP is a savings account intended to help disabled individuals who are receiving the disability tax credit (DTC) save for their long term financial security .
RDSP's provide 2 separate grants.
Canadian disability savings grants (CDSG) are available to all account holders based on annual income and the amount the account holder contributes each year.
The lifetime maximum amount of these grants is $70,000.
Lower income families can also receive Canadian Disability Savings Bonds (CDSB) up to a lifetime maximum of $20,000.
Contributions allowed up to $200,000 and are not tax deductible.
If a parent or grandparent passes away they can transfer up to $200,000 of their RRSP/RRIF or RPP to the dependent's RDSP on a tax-deferred basis.
Grants can be caught up for up to 10 years or to the date of diagnoses, whichever is less.
Grants become vested after 10 years from when they are deposited into the plan, If a withdrawal is made prior to 10 years of the first grant, the grant will be clawed back.