Registered disability savings plans
A Registered Disability Savings Plan (RDSP) is a tax-deferred savings account to assist parents and caregivers with saving for the long-term financial security of a person who's eligible for the Disability Tax Credit (DTC).
Canadian residents under 60 years of age and eligible for the Disability Tax Credit (DTC) can have an RDSP established.
RDSPs offer the following benefits:
- Matched contributions – The federal government will match contributions, up to a specified amount, to the RDSP with the Canada Disability Savings Grant.
- Canada Disability Savings Bond – The federal government will pay bonds of up to $1,000 a year to qualifying recipients, even when no contributions are made.
- Tax-exempt income – Earnings generated on qualified investments within your RDSP are tax-exempt until withdrawn from the account.
- Anyone can contribute – Anyone can contribute to an RDSP with the written permission of the plan holder.
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