What is the Registered Disability Savings Plan?

The federal Registered Disability Savings Plan (RDSP) is a new way for families and people with disabilities to save money on a tax-sheltered basis. The funds remain tax-free until they are withdrawn.
 
Why set up an RDSP?

The purpose of the Registered Disability Savings Plan (RDSP) is to help people with disabilities save money for their future. 

Are additional federal contributions available?

Yes, the federal contributions include the Canada Disability Savings Bond and the Canada Disability Savings Grant. No contributions by the individual or family are needed for the Canada Disability Savings Bond. Contributions to the RDSP may be matched by the Canada Disability Savings Grant on a sliding scale based on income.     

Do RDSPs affect people’s eligibility for social assistance?

RDSPs do not affect eligibility for social assistance.

All funds in RDSPs are exempt as assets for Ontario Works (OW) and the Ontario Disability Support Program (ODSP). 

Contributions to RDSPs made by all third parties, interest earned and re-invested in RDSPs and all withdrawals from an RDSP for any purpose are all exempt as income for OW and ODSP. 

People who are receiving social assistance who qualify to set up an RDSP but do not make contributions can benefit from the federal bonds. 

People who are receiving social assistance who qualify to set up an RDSP and make some contribution can also benefit from federal matching.   

Do RDSPs affect Assistance for Children with Severe Disabilities?

Payment from an RDSP is not considered income for Assistance for Children with Severe Disabilities (ACSD) purposes. 

Where can I find more information?

Find out more about the Registered Disability Savings Plan on the Government of Canada’s website or on the Ministry of Community and Social Services' website.

You can also call 1-800-959-8281 (TTY: 1-800-665-0354). These lines are also for people who are looking for information about qualifying for the Disability Tax Credit.