RDSP - Registered Disability Savings Plan

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.