Contributions and transfers

Making RDSP contributions

Anyone can contribute to an RDSPRDSP See Registered Disability Savings Plan.+ read full definition until the end of the year in which the beneficiaryBeneficiary The person(s), institution, trustee or estate you choose to give money, property or other benefits when you die. You may name beneficiaries in your will, insurance policy, retirement plan, annuity, trust or other contracts.+ read full definition turns age 59. Here’s what you need to know:

  1. If you are not the plan holder, you must have written permission from the plan holder to contribute to an RDSP.
  2. You can contribute any amount you want each year to an RDSP. The lifetime contribution limit for a beneficiary is $200,000.
  3. RDSP contributions are not tax deductible.
  4. You can make lump-sum contributions or set up regular payments to be taken from your bank account.

Rolling over retirement funds into an RDSP

As of July 2011, if you are the parent or grandparent of a financially dependent infirm child or grandchild, you can arrange to have your retirement savings transferred – or rolled over – to their RDSP when you die. Here’s how it works:

  1. Your retirement savings must be in an RRSP, a RRIF or a Registered Pension Plan (RPP).
    2. The government will not pay matching grants on the contributionContribution Money that you put into a savings or investment plan.+ read full definition.
    3. Any money transferred will be part of the beneficiary’s $200,000 lifetime contribution limit. Example: If the RDSP already has contributions of $50,000, the maximum that can be rolled over when you die is $150,000.

Learn more about the rules for this type of transfer.

Anyone can contribute to an RDSP with the written permission of the plan holder.

Transferring to another RDSP

Funds in one RDSP can be transferred to another RDSP as long as both plans have the same beneficiary. For instance, a beneficiary about to reach the age of majority may want to open up a new RDSP at a different financial institution. Here’s how it works:

  1. All plan holders of the current RDSP must agree to the transfer.
  2. All funds in the current RDSP must be transferred to the new RDSP.
  3. The transfer must be completed within 120 days after the new RDSP contractContract A binding written or verbal agreement that can be enforced by law.+ read full definition is signed. If the funds are not transferred on time, the new RDSP will be considered invalid.
  4. Transfer fees may apply. These may vary depending on the financial institutions involved.
  5. Transfers to another RDSP are not considered a new contribution, so they won’t affect the lifetime contribution amount of $200,000.

Key point

You can contribute to an RDSP until the earlier of:

  • the end of the year in which the beneficiary turns 59, or
  • when the $200,000 contribution limit has been reached.
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