What is an RDSP in Canada?

A Registered Disability Savings Plan (RDSP) is a tax-sheltered savings plan designed to help Canadians with disabilities and their families save for long-term financial security. The federal government provides matching grants (CDSG) of up to 300% and bonds (CDSB) based on family income, making the RDSP one of the most generous savings programs available.

Who is eligible for an RDSP?

To open an RDSP, the beneficiary must be a Canadian resident, have a valid Social Insurance Number, be eligible for the Disability Tax Credit (DTC), and be under age 60. The DTC is the key qualifying criteria and requires certification by a medical practitioner on Form T2201.

What is the CDSG (Canada Disability Savings Grant)?

The CDSG is a matching grant from the federal government. Depending on family net income, the government matches personal contributions at 300%, 200%, or 100% up to a maximum of $3,500 per year and $70,000 lifetime. Even without personal contributions, lower-income families receive grants through the CDSB.

What is the CDSB (Canada Disability Savings Bond)?

The CDSB is a government bond of up to $1,000 per year deposited directly into the RDSP for low-income beneficiaries, with no personal contribution required. The maximum lifetime CDSB is $20,000. The bond is available to beneficiaries with family net income under approximately $55,867 (2026).

How much can I contribute to an RDSP?

There is no annual contribution limit for RDSP contributions, but the lifetime contribution limit is $200,000 per beneficiary. Contributions can be made until the end of the year the beneficiary turns 59. There is no tax deduction for RDSP contributions, similar to a TFSA.

When can I withdraw from an RDSP?

You can withdraw from an RDSP at any time, but if you withdraw within 10 years of receiving a government grant or bond, an Assistance Holdback Amount (AHA) rule applies — $3 of grants/bonds may be repaid for every $1 withdrawn. After the 10-year holdback period, the AHA no longer applies. Mandatory withdrawals (LDAPs) begin by age 60.

Can someone other than the beneficiary contribute to the RDSP?

Yes. Anyone can contribute to an RDSP with the permission of the plan holder. This includes parents, grandparents, other family members, friends, and even charitable organizations. All contributions attract government matching grants up to the beneficiary eligibility limits.

How is the RDSP taxed on withdrawal?

RDSP withdrawals consist of three components: personal contributions (tax-free), government grants and bonds (taxable), and investment income (taxable). Only the grants, bonds, and growth portions are included in the beneficiary taxable income. Since many RDSP beneficiaries have low income, the tax impact is often minimal.

RDSP Calculator

The RDSP calculator helps you estimate how much your Registered Disability Savings Plan will grow over time, including government matching grants (CDSG), bonds (CDSB), and investment returns. This tool shows the remarkable power of government contributions — where even a small personal contribution can be tripled by matching grants.

How this RDSP calculator works

Enter the beneficiary’s current age, existing RDSP balance, annual contribution, family income bracket (which determines grant and bond rates), expected investment return, and planned withdrawal age. The calculator projects government grants, bonds, investment growth, and the total balance at the target age.

Key features:

CDSG matching at 300%, 200%, or 100% depending on income
CDSB bond for low-income families (up to $1,000/year)
Lifetime caps enforced ($70,000 CDSG, $20,000 CDSB)
Year-by-year breakdown table showing contributions, grants, and growth

Projected RDSP Value at Withdrawal

Total Personal Contributions

Canada Disability Savings Grant (CDSG)

Canada Disability Savings Bond (CDSB)

Total Government Money

Investment Growth

Projected Balance

Grant-Eligible Years Remaining

CDSG matching rates (2026)

Family Net Income	On First $500	On Next $1,000	Max Annual CDSG
Under $111,733	300% ($1,500)	200% ($2,000)	$3,500
Over $111,733	100% ($1,000)	—	$1,000

Lifetime CDSG cap: $70,000

For lower-income families, contributing just $1,500 per year attracts the maximum $3,500 in annual government matching. That is a 233% immediate return before any investment growth.

CDSB eligibility (2026)

Family Net Income	Annual CDSB
Under $37,487	$1,000
$37,487 – $55,867	Partial (prorated)
Over $55,867	$0

Lifetime CDSB cap: $20,000

The CDSB requires no personal contribution at all — the government deposits it directly into the RDSP.

RDSP vs other registered accounts

Feature	RDSP	TFSA	RRSP
Contribution limit	$200,000 lifetime	$7,000/year	18% of income
Tax deduction	No	No	Yes
Tax-free growth	Yes	Yes	Yes (deferred)
Government matching	Up to 300%	None	None
Tax on withdrawal	Grants & growth taxed	None	Fully taxed
Impact on benefits	May affect GIS/OAS	No	Yes
Best for	People with DTC eligibility	General savings	High earners

RDSP contribution strategy

The minimum-contribution approach

If the beneficiary’s family income is under $111,733, contributing just $1,500 per year maximizes the CDSG at $3,500. This is the most efficient approach — you get $3,500 in free grants for just $1,500 of your own money.

The maximization approach

To maximize lifetime grants, contribute consistently from a young age. The CDSG is available until the end of the year the beneficiary turns 49, so starting early gives you more years of grants plus more time for compound growth.

Carry-forward rules

If the beneficiary has unused CDSG room from previous years (since 2008), up to $10,500 in grants can be received in a single year by making a larger contribution. This is valuable for anyone who opens an RDSP later in life.

The 10-year holdback rule

The Assistance Holdback Amount (AHA) rule is the main restriction on RDSP withdrawals:

Within 10 years of receiving grants/bonds: $3 of government contributions (grants + bonds) must be repaid for every $1 withdrawn
After 10 years: No repayment required
Strategy: Stop contributing and receiving grants 10 years before you plan to make significant withdrawals

Example: If you stop contributing at age 49, the AHA period ends at age 59, and you can make full withdrawals starting at 60 (when LDAPs begin).

How the RDSP affects other benefits

RDSP assets and income may affect provincial disability benefits differently depending on the province. However, the federal government excludes RDSP income from the calculation of:

Canada Child Benefit (CCB)
GST/HST Credit
Some provincial benefits (varies by province)

Important: Withdrawals may affect GIS and provincial social assistance. Consult a financial advisor familiar with disability benefits.

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