Registered Disability Savings Plan — Up to $70,000 in Government Grants
What you will learn: What the RDSP is, how much the government contributes, who qualifies, how to open one, and the rules you need to know before withdrawing.
Patricia's story. Patricia, 58, from Hamilton, Ontario, has had Type 1 diabetes since age 12 and was approved for the Disability Tax Credit four years ago. Her financial adviser mentioned the RDSP at an appointment, but Patricia assumed she was too old and too close to retirement to benefit.
When her daughter researched it, they discovered that Patricia still had a year before her 59th birthday — and that for the years she'd been DTC-eligible, she could make catch-up contributions that would trigger additional government grants retroactively, going back to when she first qualified.
Patricia opened an RDSP, made several years of catch-up contributions, and received more than $17,000 in Canada Disability Savings Grants deposited directly into the account by the federal government. Her daughter is listed as the plan successor.
Patricia's advice: "If you have the DTC, ask about the RDSP right away — even if you think you're too old. The catch-up rules surprised us both."
What Is the RDSP?
The Registered Disability Savings Plan (RDSP) is a government-sponsored savings account for Canadians who hold the Disability Tax Credit (DTC). Unlike an RRSP or TFSA, the RDSP is not primarily funded by you — it is designed so the federal government contributes the majority of the money through two programmes:
- Canada Disability Savings Grant (CDSG) — matches your contributions at 100%, 200%, or 300% depending on family income (up to $3,500/year, $70,000 lifetime)
- Canada Disability Savings Bond (CDSB) — paid to low-income beneficiaries with no contribution required (up to $1,000/year, $20,000 lifetime)
For the Canada Disability Savings Bond, you do not have to put in a single dollar of your own money. The government deposits up to $1,000/year directly into the RDSP for low-income DTC holders. You must open the account and apply for the Bond — but no personal contribution is required to trigger it.
Who Qualifies
To open an RDSP:
- The beneficiary must be a Canadian resident with a valid Social Insurance Number
- The beneficiary must have an approved Disability Tax Credit (DTC) certificate on file with the CRA
- The beneficiary must be under age 60 at the time contributions are made (to receive government grants and bonds)
- The RDSP must be opened and the DTC approved before December 31 of the year the beneficiary turns 59
The RDSP requires an approved DTC certificate. If you have not yet applied for the Disability Tax Credit, that is the first step. See our Disability Tax Credit guide — the DTC is often retroactively approved for up to 10 past years, which also means you may be eligible for retroactive RDSP grant contributions.
How Much the Government Contributes
The Canada Disability Savings Grant (CDSG) matches your contributions at different rates depending on your net family income. For 2026:
| Net family income | On first $500 contributed | On next $1,000 contributed | Max CDSG per year |
|---|---|---|---|
| $111,733 or less | 300% match ($1,500 on $500) | 200% match ($2,000 on $1,000) | $3,500 |
| Over $111,733 | 100% match (up to $1,000) | No additional match | $1,000 |
The Canada Disability Savings Bond (CDSB) is paid with no contribution required:
| Net family income | Annual Bond | Lifetime maximum |
|---|---|---|
| $35,902 or less | $1,000/year | $20,000 |
| $35,903 – $55,867 | Partial Bond (reduced amount) | Pro-rated |
If the beneficiary was DTC-eligible in prior years but did not have an RDSP open, they may be able to make catch-up contributions that attract government grants going back up to 10 years. This means someone who was approved for the DTC in 2018 but only opens an RDSP in 2026 may be eligible for grants for those missed years — subject to contribution room rules. Ask your financial institution to calculate your catch-up room when you open the account.
How to Open an RDSP
Opening an RDSP step by step:
The 10-Year Withdrawal Rule
The RDSP has an important restriction: if you withdraw money and the government deposited any grants or bonds in the preceding 10 years, those government funds must be repaid. This is called the Assistance Holdback Amount (AHA).
After 10 years of no government contributions: The holdback amount reaches zero. At that point, the full balance (your contributions + government grants + investment growth) is available.
Lifetime Disability Assistance Payments (LDAPs): Annual withdrawal payments that must begin by age 60, calculated by a formula based on account balance and life expectancy. These are not subject to the AHA holdback.
Exception — shortened life expectancy: If a medical professional certifies the beneficiary's life expectancy is five years or less, the AHA repayment obligation can be waived.
RDSP and Provincial Disability Benefits
RDSP assets and income from RDSPs are treated differently by different provinces:
- Ontario (ODSP): RDSP assets are fully exempt. RDSP withdrawals are treated as income — which can affect ODSP payments. Confirm amounts with your ODSP caseworker before making large withdrawals.
- British Columbia, Alberta, Manitoba: RDSP is generally exempt from disability assistance calculations.
- Other provinces: Rules vary. Contact your provincial disability office before opening or withdrawing.
- Federal benefits (GIS, OAS): RDSP contributions and government grants do not affect GIS or OAS.
Frequently Asked Questions
What is the deadline for opening an RDSP?
To receive government grants and bonds, the beneficiary must be under 49 at the time contributions are made. The RDSP must be opened before December 31 of the year the beneficiary turns 59. There is no deadline to open the account itself, but opening it later means fewer years of government contributions.
If the DTC was approved retroactively for past years, catch-up contributions can attract grants going back up to 10 years — which means even someone opening an RDSP late may be eligible for substantial government contributions.
Can I withdraw from the RDSP at any time?
Not without penalties if government grants or bonds were received in the past 10 years. Early withdrawals trigger repayment of some or all government contributions under the Assistance Holdback Amount (AHA) rules.
After the 10-year holdback period passes, you can withdraw freely. Lifetime Disability Assistance Payments (annual withdrawals starting no later than age 60) are not subject to the AHA. An exception exists for shortened life expectancy.
Does the RDSP affect my GIS or provincial disability benefits?
RDSP contributions and government grants do not affect federal GIS or OAS. Provincial disability support rules vary — most provinces now exempt RDSP assets from disability support calculations, but RDSP withdrawals may be treated as income. Always confirm the rules with your provincial office before making withdrawals.
Can a family member open an RDSP for an adult with a disability?
For an adult who is legally capable, the beneficiary opens the plan themselves. A qualifying family member (parent, spouse, common-law partner) can be the plan holder for a minor child, or for an adult who lacks legal capacity. Contact your financial institution if legal capacity is uncertain — the rules are complex and vary by province.
If you hold the Disability Tax Credit and are under 49, the RDSP is one of the highest-return financial decisions available to you. The government can contribute more to your account than you ever put in.
If you are not sure whether you qualify for the DTC, that is the place to start. The DTC application (Form T2201) can be approved retroactively for up to 10 past years — which also means retroactive RDSP grant eligibility.