If you are a Canadian with a disability or are a Canadian with a child who has a disability, there is additional support from the Government of Canada available to you that you may not know about. If you are a Canadian resident that qualifies for the Disability Tax Credit you may also be eligible for a Registered Disabilities Savings Plan or RDSP. Depending on your income, there are immediate benefits to this savings plan such as bonds that get paid out without any contribution at all so it is definitely worth your time to apply and see if you are eligible.

An RDSP is a long-term savings plan. The government is offering grants and bonds to help you with saving for your future. Here is how it works:

Canada Disability Savings Grant:
For every $1 put in an RDSP account, the federal government can, depending on your income match from at least 100% all the way up to 300%

Canada Disability Savings Bond:
For people living on a low-income (less than $30,000), the federal government will put in $1000 each year for 20 years regardless of any contributions. People living on an income between $25,356 – $45,916, can still receive a partial bond.

What are the benefits?

  • Depending on someone’s income, any money saved can immediately triple in value. Once investment decisions are made, it can really start to grow!
  • The RDSP is exempt from most provincial disability and income assistance benefits. It does not get clawed back and it does not reduce disability benefits payments.
  • When it comes time to withdrawing your savings, unlike other savings plans out there – there are no restrictions on how the money can be spent!
  • There is no annual contribution limit but you are limited to contributing a maximum of $200,000 in your life time.
  • Parents or guardians may open an RDSP for a child under the age of majority
  • Anyone can contribute to the RDSP as long as they have written permission from the RDSPholder.

Are you eligible?
Here are the basic eligibility requirements:

  • Be eligible for the Disability Tax Credit
  • Be a resident of Canada
  • Register before the end of the calendar year of the year which you turn 59
  • Have a valid Social Insurance Number (SIN)

How do you withdraw money from the plan?
The RDSP is a long -term savings plan requires you to save for ten years, after which you are free to withdraw the funds through Lifetime Disability Assistance Payments or LDAP’s . If you choose to withdraw funds prior to the 10 year mark, you can only recover your contributions and you will need to repay the government bonds and grants.

What are LDAP’s and how do they work?
Annual withdrawals, or Lifetime Disability Assistance Payments (LDAPs), begin by the end of the year in which the beneficiary turns 60. These annual payments will then continue for the life of the beneficiary. The amount of these payments are calculated based on the life expectancy of the beneficiary.

How do I get started?
To get started and apply for the RDSP, you can contact a participating institution from the list below. We advise that you call ahead as many financial institutions lack information regarding this program. We personally recommend the Mackenzie Financial Corporation and would be happy to put you in touch with Vince Mackay who is well versed on this topic.

  • ATB Securities Inc.
  • Bank of Montreal
  • Bank of Nova Scotia
  • Central 1 Credit Union
  • Central 1 Trust Company
  • Community Trust Company
  • CIBC
  • Investors Group Trust Co. Ltd.
  • Fonds d’investissements FMOQ inc. (French only)
  • Mackenzie Financial Corporation
  • RBC Royal Bank
  • TD Waterhouse Canada Inc.
  • Natcan Trust Company
  • Desjardins


Simplified Financial is proud to announce that we’ll be hosting an information night on Thursday, January 31st for anyone who is interested in learning more about this topic.

The event will take place from 6:30 – 8:30 PM at St. Andrews Heritage Church, 22279 116 Ave, Maple Ridge

$10 per Family of 4