The Registered Disability Savings Plan

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 (disability amount).

Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59 years of age. Contributions that are withdrawn are not to be included as income for the beneficiary when paid out of an RDSP.

However, the Canada disability savings grant (grant), Canada disability savings bond (bond) and investment income earned in the plan are included in the beneficiary’s income for tax purposes when paid out of the RDSP.

Once a client for the DTC Consultant Services is approved for the DTC, it is our mandate to refer you and arrange a free consultation with a qualified financial planner, specializing in the RDSP.