​This savings plan was established to help parents and others save for the long-term financial security of a disabled person (one who qualifies for the Disability Tax Credit).

Key features

1. The beneficiary of the plan is the person with the disability who will receive the money in the future.
2. The plan holder is the person who opens and manages the RDSP. The beneficiary can also be the plan holder.
3. Contributions can be made to the plan until the beneficiary turns 59. Contributions are not tax deductible.
4. There is no tax payable on any investment earnings while the funds are in the plan. Money taken out of the plan in excess of contributions will be taxed.

5. There is no annual limit on contributions but the lifetime contribution limit for a beneficiary is $200,000.

   The beneficiary of an RDSP can continue to receive federal and provincial disability benefits.
6. Until age 49, the beneficiary may be eligible for government contributions to the RDSP under:
   • the Canada Disability Savings Grant (CDSG), and
   • the Canada Disability Savings Bond (CDSB).
7. RDSP savings can be held in a variety of investments, depending on where the plan is opened.
8. The beneficiary must start taking regular payments from the plan by age 60.

Learn more about how RDSPs work.