Registered Disability Savings Plan Information

What is an RDSP?
A Register Disability Savings Plan (RDSP) is a long-term savings plan designed to help those with disabilities save for the future. Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59.

 

Who qualifies for an RDSP?
To apply for an RDSP the beneficiary must:

  1. Have a valid Social Insurance Number (SIN)

  2. Be eligible for the Disability Tax Credit

  3. A resident of Canada

  4. Filed their income taxes

  5. Be under the age of 59 before the end of the calendar year

Eligibility and contributions - Canada.ca – CRA Website page with eligibility requirements.

 Where can I open an RDSP?

(list via Canada Revenue Agency list of approved institutions Open a Registered Disability Savings Plan - Canada.ca)

  • ATB Securities Inc.

  • Bank of Montreal

  • Bank of Nova Scotia

  • Central 1 Credit Union

  • Central 1 Trust Company

  • Concentra Bank

  • Credential Asset Management Inc.

  • Credential Qtrade Securities Inc.

  • CIBC

  • Desjardins

  • Investors Group Trust Co. Ltd.

  • Mackenzie Financial Corporation

  • RBC Royal Bank

  • TD Waterhouse Canada Inc.

  • Natcan Trust Company

For more information or if you have any questions, please feel free to contact Levi Nilson, CPAA RDSP Engagement Specialist 
lnilson@cpalberta.com
403-219-3618

 

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Frequently Asked Questions

Q: Do I have to pay taxes on my RDSP?
A:
When your money is in an RDSP, you do not pay tax on it. All of your personal contributions, matching government contributions, and investment earnings from your RDSP are not taxed while in your RDSP account. However, when you begin to take money out of an RDSP (normal withdrawals start at age 60) you may pay tax on part of it.

Q: How much can I contribute to an RDSP?
A:
The max amount you can contribute to an RDSP over the lifetime of the account is $200,000. There is no limitation on how much of the total you can into an RDSP at one time, but to receive the maximum amount of matching government contributions, you must be strategic in how much you deposit at one time. Depositing $1500/year will gain you the maximum amount of matching government contributions ($3500/year). Anything over $1500 annually receives no further government contributions. Consult with your financial advisor to plan accordingly to get the most out of your RDSP.

Q: Will an RDSP affect my other government benefits?
A:
No. The RDSP does not have any effect on any other federal benefits or provincial benefits in Alberta. 

 

Q: What do I need to qualify for an RDSP?

A: You need the following to qualify for an RDSP:

  • A valid Social Insurance Number (SIN)

  • Be a resident of Canada

  • Qualify for the Disability Tax Credit (DTC)

(For more information on the application process for a DTC, click here to learn more about eligibility requirements, as well as links to the Disability Tax Credit Certificate (Form T2201) Eligibility criteria for the disability tax credit.)

  • Be under the age of 60

  • Additionally, you will need to have filed your income taxes for the previous two years to receive government contributions in your RDSP.

Q: When can I start withdrawing money from an RDSP?

A: Normal withdrawals start at age 60. Withdrawals before age 60 are subject to a withdrawal fee. Exceptions to this rule are available to those with shortened life expectancy. To learn more about withdrawals click here Withdraw savings from an RDSP - Canada.ca

Q: How long do the government contributions last?
A: Government contributions in the form of grants and bonds are available until after the calendar year in which the RDSP beneficiary turns 49. 


Q: Where can I open an RDSP?
A: The Government of Canada has an official list of institutions that offer the RDSP here - Open a Registered Disability Savings Plan - Canada.ca
If you don’t see your financial institution on this list, give them a call and see if they offer it! More financial institutions are offering the RDSP all the time.