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Registered Disability Savings Plan (RDSP)

Improve the financial future of someone with a disability.

An RDSP is a long-term savings plan that benefits people with disabilities, and their families


Individual or family contributions can be combined with government grants and bonds to grow in a tax-deferred environment. By investing wisely, the RDSP can grow into a significant asset.

What are the benefits of an RDSP?

Government assistance
-Grants and bonds can help your savings grow faster but assets or income from an RDSP will not affect your ability to receive disability benefits such as AISH.

Tax-deferred growth
-Contributions aren’t tax deductible, but the tax is deferred on income earned until funds are withdrawn.

No annual contribution limit
-There is a lifetime limit of $200,000. Contributions can be made until the end of the year the beneficiary turns 59.

Investment options
-We’ll set you up with a customized investment plan to help you meet your RDSP goals. Options include Guaranteed Investment Certificates (GICs), High Interest Savings Accounts (HISAs) and mutual funds like ATB’s proprietary Compass Portfolio Series.

 

Beneficiaries of an RDSP must:

  • be eligible for the Disability Tax Credit (DTC) as defined in the Income Tax Act (Canada)
  • have a Social Insurance Number (SIN)
  • have filed tax returns for the previous two years in order to achieve the best possible grant and bond contribution. In the case that the beneficiary is a minor, the tax returns of the primary caregiver would be used
  • be a resident of Canada when the plan is opened and when each contribution is made
  • be under age 60 when the plan is opened, since contributions cannot be accepted after the end of the year the beneficiary turns 59

 

Who can hold an RDSP?

  • a person with a disability, who is of the age of majority (18 or 19 depending on the province) and has the legal capacity to manage his or her finances
  • a qualifying family member of a person with a disability who is of the age of majority but whose contractual competency is in doubt
  • a legal parent or legal representative of a child with a disability who has not attained the age of majority

 

Who can contribute to an RDSP?

  • the plan holder of the RDSP
  • anyone whom the plan holder has authorized to make contributions

 

Canada Disability Savings Bond (CDSB)

The government of Canada will deposit money into the RDSP of low-income individuals until the end of the year the beneficiary turns 49, regardless of whether contributions are made to the RDSP. Once the plan has been opened, the maximum payment is $1,000 annually, to a lifetime maximum of $20,000. The amount of the bond is based on the beneficiary’s family income.

 

Withdrawals from an RDSP

Withdrawals are referred to as disability assistance payments (DAPs). These payments can be flexible or periodic and must begin by the end of the year the beneficiary turns age 60.

 

Want to know more?

The benefits of an RDSP are immense, but applying may seem overwhelming. Our team of financial and goal planning advisors are here to help you.
Connect with one at an ATB branch or call 1-888-282-3863.

Canada Revenue Agency is a great resource too. Learn more ​​​​

1-800-332-8383

Start a conversation with an ATB Expert

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