Registered Disability Savings Plans

People with disabilities and their families face a distinct set of financial challenges throughout their lives. To help address these challenges the Government of Canada introduced the Registered Disability Savings Plan (RDSP).

What is a Registered Disability Savings Plan (RDSP)?

The RDSP is a tax-deferred savings vehicle designed to help parents and others save for the long-term financial security of people with severe disabilities. An RSDP makes it easier to accumulate funds by providing assisted savings and tax-deferred investment growth.

Who is eligible for RDSPs?

A Canadian resident under the age of 60 who is eligible for the Disability Tax Credit (DTC) is eligible for an RDSP. The DTC is available to individuals who have mental or physical impairments that markedly restrict their ability to perform one or more of the basic activities of living (i.e., speaking, hearing or walking). The impairment must be expected to last a period of one or more years, and a physician must certify the extent of the disability. Individuals can apply to the Canada Revenue Agency (CRA) for the DTC using form T2201.

To qualify for an RDSP, you must:

  • Be eligible for the Disability Tax Credit
  • Be a resident of Canada
  • Be less than 60 years of age
  • Have a valid Social Insurance Number

Talk with a Libro Coach to see if RDSPs make sense for your financial plan.

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You can also learn more about RDSPs at the CRA’s website.