The Registered Disability Savings Plan
An RDSP beneficiary must have a valid Social Insurance Number (SIN) and be:
Eligible for the Disability Tax Credit (DTC)
A Canadian resident when the plan is set up and when each contribution is made
59 years old or younger
49 years old or younger to receive the Canada Disability Savings Grant and/or Bond
A beneficiary can only have one RDSP at any given time.
You can open an RDSP and be the plan holder if you are:
A person with a disability who is the age of majority and has the capacity to manage his or her finances;
The legal parent of a child with a disability who has not reached the age of majority;
A guardian or other representative who is legally authorized to act on behalf of a person with a disability
When a plan is opened by a beneficiary’s legal parent, the parent may continue to be the plan holder after the beneficiary reaches the age of majority.
Protecting other Benefits:
RDSP payments do not affect eligibility for Federal Government benefits such as the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit and the Canada Child Benefit. However, support payments or means-tested disability pensions received from the province where the beneficiary resides may be reduced or eliminated.
Withdrawals include a blend of taxable and non-taxable amounts. Contributions are not included as taxable income when paid out of an RDSP. However, investment income and capital gains plus any Canada Disability Savings Grant (CDSG) and Canada Disability Savings Bond (CDSB) amounts in the plan are included in the beneficiary’s income for tax purposes when paid out of the RDSP. Withdrawals after a specified threshold are subject to withholding tax at source.
“Community Services will fully exempt the Registered Disability Savings Plan contributions when calculating clients' eligibility for income assistance. (Contributions will not effect the amount of support a client receives.)Clients will also be able to withdraw funds from the plan without affecting their income assistance payments.”