RDSP Account - Registered Disability Savings Plan

How does an RDSP work?

• Eligibility requirements include approved disability tax credit, Canadian citizenship and SIN #.
• Every $1 is matched with up to $3 from the government (to a maximum of $3,500 each year, with a lifetime limit of $70,000; grants are paid into the RDSP account until the end of the calendar year in which the recipient turns 49 years of age).
• There is no annual contribution limit, but the lifetime limit is $200,000.
• Contributions can be made up until the end of the year the beneficiary turns 59.
• Low income individuals may be eligible for an additional $1000 a year for 20 years.
• There are no restrictions on how RDSP withdrawals are spent.
• The RDSP is exempt from most provincial disability and income assistance benefits.
  
• RDSP contributions are not tax-deductible, but income earned grows on a tax-deferred basis until the funds are withdrawn. When withdrawn, the amount is taxed as income.