RDSP: Registered Disability Savings Plan — complete guide 2026

Eligibility for the RDSP

To open an RDSP, the beneficiary must be a Canadian resident, under age 60 at the time of opening, and eligible for the Disability Tax Credit (DTC). Form T2201 (DTC certificate) must be approved by the CRA. The RDSP can be opened by the beneficiary, a parent, legal guardian, or a qualifying holder designated by a court.

The beneficiary can be a child or an adult. If the beneficiary is a minor, a parent or legal guardian acts as the plan holder. At the age of majority, the beneficiary can become the holder if capable.

Contributions: $200,000 lifetime limit

The lifetime contribution limit is $200,000. There is no annual limit. Contributions are not tax-deductible, but growth accumulates tax-sheltered. Anyone can contribute to a beneficiary's RDSP (parents, grandparents, friends, organizations). Contributions can be made until the end of the year the beneficiary turns 59.

Reference: s. 146.4 ITA.

Canada Disability Savings Grant (CDSG)

The federal government pays the CDSG to match RDSP contributions. The matching rate depends on the beneficiary's family income. For modest-income families (less than approximately $106,717 in 2026), the government matches up to 300% on the first $500 contributed and 200% on the next $1,000, for a maximum of $3,500 per year.

For higher-income families, the government matches 100% of contributions up to $1,000 per year. The lifetime CDSG maximum is $70,000. Unused CDSG entitlements can be carried forward for 10 years, allowing catch-up for missed years. Grants stop at the end of the year the beneficiary turns 49.

Canada Disability Savings Bond (CDSB)

The CDSB is paid directly by the government to low-income beneficiaries, with no contribution required. The annual amount is $1,000 for families with income below approximately $34,863 (2026), with a reduced amount for incomes between $34,863 and $53,359. The lifetime maximum is $20,000.

To receive the CDSB, the beneficiary only needs an open RDSP and must file an annual tax return. No contributions are required. Unused CDSB entitlements can be carried forward for 10 years.

The 10-year rule: assistance holdback amount (AHA)

The 10-year rule (also called the assistance holdback amount or AHA) prevents premature withdrawals after receiving grants. If a withdrawal is made within 10 years of the last CDSG or CDSB payment, for every dollar withdrawn, $3 of grants and bonds must be repaid to the government.

The repayment is limited to grants and bonds received in the last 10 years. This rule encourages keeping funds in the RDSP long-term and avoiding withdrawals until grants have been received for more than 10 years.

Withdrawal taxation

RDSP withdrawals have three components: contributions (not taxable, since they were made with after-tax dollars), government grants and bonds (taxable), and investment growth (taxable). The grants, bonds, and growth portions are included in the beneficiary's taxable income.

An important benefit: RDSP withdrawals generally do not affect eligibility for provincial benefits (social assistance, Quebec solidarity program) in most provinces. The withdrawal formula uses a proportional ratio among the three components.

Lifetime disability assistance payments (LDAPs)

Starting in the year the beneficiary turns 60, lifetime disability assistance payments (LDAPs) must begin. The annual amount is determined by a formula based on the FMV of the RDSP and the beneficiary's life expectancy. The holder may start LDAPs before age 60 if desired.

Frequently asked questions