CA Tax Tools

Disability Benefits & RDSP Savings

Start with DTC eligibility, then plan current and unused RDSP entitlements before deciding when to withdraw.

Important limits

  • New grant and bond entitlement ends after the calendar year the beneficiary turns 49.
  • Lifetime limits are $70,000 of grant, $20,000 of bond, and $200,000 of private contributions.
  • Withdrawals may trigger repayment of grants and bonds paid during the preceding 10 years.

Frequently asked questions

Do I need the Disability Tax Credit to open an RDSP?

Yes. Eligibility for the RDSP, and for the government grants and bonds paid into it, generally requires an approved Disability Tax Credit certificate. Apply for and confirm DTC approval first, then open the RDSP.

What are the RDSP lifetime limits?

A beneficiary can receive up to $70,000 in Canada Disability Savings Grants and $20,000 in Canada Disability Savings Bonds over their lifetime, and the plan can hold up to $200,000 in private contributions.

Until what age can I receive new RDSP grants and bonds?

New grant and bond entitlement ends after the calendar year the beneficiary turns 49. Unused entitlement from up to 10 prior years can still be claimed with a large enough contribution before that cutoff.

What happens if I withdraw from an RDSP too soon after a grant or bond is paid in?

Withdrawing money can trigger repayment of grants and bonds paid into the plan during the preceding 10 years, under the assistance holdback rule — generally 3 dollars of grant/bond repaid for every dollar withdrawn from that holdback amount. Plan withdrawal timing around this rule to avoid an unexpected clawback.

Official sources

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