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A Registered Disability Savings Plan (RDSP) is a savings program created by the federal government to encourage and assist Canadians with disabilities and/or their families to save for long-term financial needs.
The plan allows savings to grow in a tax-deferred environment, similar to other registered savings plans such as RESPs and RSPs.
The RDSP can also increase savings, as the plan is eligible to receive government assistance in the form of —
- grants totalling up to $70,000; and
- bonds totalling up to $20,000.
Making Contributions
Contributions can be up to a lifetime limit of $200,000. Contributions are made with after-tax dollars and are not tax-deductible. As well —
- Others, such as friends and family, can contribute with the written permission of the plan holder
- Deposits/contributions can be made up until the end of the year the beneficiary turns 59
- All contributions made to an RDSP are non-refundable
For more information, or to open a Registered Disability Savings Account, please visit any TD Waterhouse Investor Centre or TD Canada Trust branch, or speak with an Investment Representative at 1-866-280-2022.
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