The Registered Disability Savings Plan (RDSP) is a wonderful tool for building financial security for a loved one with a long-term disability. To participate in this plan, the beneficiary must be approved for the Disability Tax Credit.

Once approved for the DTC, any financial institution can help you open a RDSP. Everything saved within this investment account grows tax deferred.

Additionally, the Government of Canada will match any investment with a disability savings grant of either 100 percent, 200 percent or 300 percent, based on your family’s adjusted net income.  For example, a family falling below the income threshold that invests $500 in a RDSP would receive a $1,500 grant from the Government of Canada.

The maximum disability savings grant is $70,000 over a lifetime. Contributions may be made into a RDSP from birth up until year-end at age 59.  

For those who qualify for the DTC, we generally recommend a RDSP over another tax-free savings account or registered savings plan because of the government grant money.

Visit the Government of Canada web site for full details about the Registered Disability Savings Plan.

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