Registered Disability Savings Plan (RDSP)
Build long-term financial security with an RDSP
A Registered Disability Savings Plan (RDSP) is a long-term savings and investment plan designed to help Canadians who are approved for the Disability Tax Credit (DTC) save for their future.
An RDSP offers tax-sheltered investment growth and access to valuable Government of Canada grants and bonds. Depending on eligibility, these government incentives can add significantly to long-term savings.
The potential benefits can be significant
An eligible RDSP beneficiary may receive up to:
$70,000 Canada Disability Savings Grant
$20,000 Canada Disability Savings Bond
$90,000 Potential lifetime government grants and bonds
$200,000 Lifetime private contribution limit
Maximum government benefits are subject to eligibility, family income, age, contributions and applicable program rules.
What is an RDSP?
An RDSP is a registered savings plan established for the benefit of a person who is approved for the Disability Tax Credit (DTC).
Contributions can be made by the beneficiary or, with the plan holder's written permission, by family members and others. There is no annual contribution limit, although total private contributions are limited to $200,000 over the beneficiary's lifetime.
Contributions are not tax-deductible. However, investment growth within the RDSP is tax-sheltered while it remains in the plan.
One of the most valuable features of an RDSP is the opportunity to receive additional savings through the Canada Disability Savings Grant and Canada Disability Savings Bond.
Who is eligible for an RDSP?
To be the beneficiary of a new RDSP, an individual generally must:
Be approved for the Disability Tax Credit (DTC)
Have a valid Social Insurance Number (SIN)
Be a resident of Canada when the plan is opened
Be under age 60 — an RDSP can generally be opened until December 31 of the year the beneficiary turns 59
Government grants and bonds are available only until December 31 of the year the beneficiary turns 49, subject to eligibility.
Start with the Disability Tax Credit
Being approved for the Disability Tax Credit is an important first step.
If you or a family member may qualify for the DTC but have not yet applied, an application can be made to the Canada Revenue Agency. A medical practitioner must certify the applicable information and the CRA must approve the application.
Learn more about the Disability Tax Credit →
Government grants can significantly increase your savings
Canada Disability Savings Grant (CDSG)
The Canada Disability Savings Grant is a matching grant deposited by the Government of Canada directly into an eligible RDSP.
Depending on family income, the government may provide matching grants of 100%, 200% or 300% of eligible contributions.
For eligible beneficiaries within the enhanced matching threshold, a $1,500 annual contribution could attract as much as $3,500 in government grants:
| Your Contribution | Potential Government Grant |
|---|
| First $500 | Up to $1,500 — 300% |
| Next $1,000 | Up to $2,000 — 200% |
| Total $1,500 | Up to $3,500 |
The CDSG has a $70,000 lifetime maximum.
For 2026, the enhanced 300%/200% matching rates generally apply where applicable family income is $117,045 or less. Above this threshold, the grant is generally 100% on up to the first $1,000 contributed, subject to eligibility and lifetime limits.
Income thresholds are indexed and may change annually.
You may qualify for government bonds without making a contribution
Canada Disability Savings Bond (CDSB)
The Canada Disability Savings Bond is designed to assist eligible Canadians with low or modest incomes.
Unlike the grant, you do not need to contribute to an RDSP to receive the bond.
An eligible beneficiary can receive:
The amount received depends on family income and applicable government thresholds.
This makes opening an RDSP worth investigating even when making regular personal contributions is not currently financially possible.
Have you missed previous grants or bonds?
You may be able to catch up
This is one of the most important RDSP planning opportunities.
If the beneficiary was approved for the Disability Tax Credit in previous years but did not have an RDSP—or did not maximize the available government assistance—there may be an opportunity to carry forward unused grant and bond entitlements from up to the previous 10 years, subject to eligibility.
With carry-forward entitlements, an RDSP can potentially receive up to:
$10,500 of Canada Disability Savings Grants in one year
$11,000 of Canada Disability Savings Bonds in one year
The contribution required to maximize available grants will depend on the beneficiary's individual grant history, family income and available carry-forward entitlement.
Before making a large contribution, speak with your financial advisor. Your advisor can help determine whether unused grant or bond entitlements may be available and develop an appropriate contribution strategy.
Who can contribute?
Once an RDSP has been established, contributions can be made by the beneficiary or by other individuals with the written permission of the plan holder.
This means parents, grandparents and other family members may be able to contribute toward the beneficiary's long-term financial security.
Keep in mind:
There is no annual private contribution limit
The lifetime private contribution maximum is $200,000
Contributions are not tax-deductible
Government grants and bonds do not count toward the $200,000 private contribution limit
Contributions can generally be made until December 31 of the year the beneficiary turns 59
An advisor can help coordinate contributions so that available government incentives are considered before deciding how much and when to contribute.
Turning RDSP savings into income
RDSPs are designed primarily for long-term savings.
There are two principal forms of payments from an RDSP:
Lifetime Disability Assistance Payments (LDAPs)
LDAPs are recurring payments from an RDSP. These payments must begin no later than December 31 of the year the beneficiary turns 60 and, once commenced, generally continue annually.
Disability Assistance Payments (DAPs)
A DAP is a single payment from the RDSP to the beneficiary. Availability and applicable limits can depend on the plan and circumstances.
Consider withdrawals carefully
Withdrawing money can affect government grants and bonds.
Depending on when government assistance was received, an early withdrawal can require some grants and bonds to be repaid to the Government of Canada. Generally, the proportional repayment rule can require $3 of grants and bonds to be repaid for each $1 withdrawn, up to the applicable assistance holdback amount.
For this reason, an RDSP should generally be approached as a long-term financial planning strategy, and withdrawals should be reviewed carefully before proceeding.
An RDSP with Empire Life
Global Pacific advisors have access to Empire Life's Registered Disability Savings Plan, the first RDSP offered by a Canadian life insurance company.
The Empire Life RDSP holds an Empire Life Guaranteed Investment Funds (GIF) 75/75 segregated fund contract, providing access to a diversified range of investment options.
Empire Life GIF 75/75 features
Investment choice
Choose from a range of investment options, from fixed income through to 100% equity, based on the beneficiary's objectives, time horizon and investor profile.
Insurance guarantees
The GIF 75/75 contract provides a 75% maturity benefit guarantee and 75% death benefit guarantee, subject to the terms of the contract.
Tax-sheltered growth within the RDSP
Investment growth remains tax-sheltered while held within the RDSP.
Digital application process
Working with an advisor, the Empire Life RDSP and applicable government grant and bond applications can be completed digitally, including electronic signatures.
See what an RDSP could mean for your future
Your financial advisor can prepare an Empire Life RDSP illustration to help you understand:
Available government grants and bonds
Potential unused carry-forward entitlements
Contributions that may help maximize available grants
Investment and savings projections
The potential long-term value of your RDSP
Could you or a family member benefit from an RDSP?
Whether you are opening an RDSP for the first time, have unused grant entitlements from previous years, or already have an RDSP that you would like reviewed, professional advice can help you make the most of the available opportunities.
A financial advisor can help you:
Understand RDSP eligibility
Review potential government grants and bonds
Identify possible catch-up opportunities
Determine an appropriate contribution strategy
Select investments suited to the beneficiary's objectives and time horizon
Review an existing RDSP or discuss transfer options
Speak with your advisor
Don't have an advisor? Contact Global Pacific to connect with a licensed financial advisor.
Important Information
The information provided is for general educational purposes only and is not intended to provide financial, investment, insurance, tax or legal advice. RDSP eligibility and the availability and amount of Canada Disability Savings Grants and Canada Disability Savings Bonds depend on individual circumstances and applicable government rules. Income thresholds and program rules may change.
Segregated fund contracts are insurance products. Any guarantees are subject to the terms and conditions of the applicable contract. Investment values may fluctuate.
Please consult your financial advisor and, where appropriate, a qualified tax or legal professional regarding your individual circumstances.
