A registered disability savings plan (RDSP) is a savings plan that is intended to help parents and others save for the long-term financial security of a person who is eligible for the disability tax credit (DTC).
Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59. Contributions that are withdrawn are not included in income for the beneficiary when they are paid out of an RDSP. However, the Canada disability savings grant (grant), the Canada disability savings bond (bond), investment income earned in the plan, and rollover amounts are included in the beneficiary's income for tax purposes when they are paid out of the RDSP.
To open an RDSP, you must apply and be approved for the Disability Tax Credit. To find out more about the RDSP, go to the Human Resources and Skills Development Canada website and look in the section "Disability." For information on how to apply for the Disability Tax Credit, go to the Canada Revenue Agency website. Click on "Individuals and Families" and then "Information for Persons with Disabilities."
For more information, request a consultation and we will get back to you with more detail.