An RDSP is set up so that the beneficiary will eventually receive regular payments from the plan. These are called lifetime disability assistance payments.
How the payments work
- The beneficiary can receive payments from the plan at any time, but must begin receiving regular payments no later than the end of the year they turn age 60. If payments don't start by age 60, the beneficiary will no longer qualify for the Disability Tax Credit.
- Once the payments start, they must be made at least annually until the beneficiary dies or the plan is closed.
- The maximum annual payment amount is using a formula established by the CRA that takes into account the value of the plan and the life expectancy of the beneficiary. Talk to your financial institution about payment amounts and frequency.
Continue receiving other benefits
Payments do not affect a beneficiary’s eligibility for:
- federal benefits like the HST credit and the Canada Child Tax Benefit, and
- provincial benefits in most provinces. Learn more about provincial rules for withdrawals.
Tax consequences
The beneficiary may have to pay tax on the portion of each payment that comes from:
- government grants and bonds, and
- investment earnings.
But they won't pay tax on the portion that comes from contributions made to the RDSP.
You must begin receiving regular payments from your plan by the end of the year you turn 60.
Estimate future payments
Use this calculator to do the math. It estimates what your RDSP could be worth in the future and the potential payments you could receive.