Registered Disability Savings Plan (RDSP): Eligibility, Grants, Bonds & How to Apply

A Registered Disability Savings Plan (RDSP) is a long-term savings plan created by the Government of Canada to help a person with a disability save for their future financial security. The person the plan is for is called the beneficiary. The person who opens and manages the plan is the plan holder.

Here is what makes an RDSP different from an ordinary savings account:

• It is long-term. The plan is designed to hold money and grow it over many years. Regular withdrawals usually begin around age 60.
• The government adds money. Through two programs — the Canada Disability Savings Grant and the Canada Disability Savings Bond — the government can contribute up to $90,000 over the beneficiary's lifetime.
• Anyone can contribute. You, your parents, grandparents, siblings, friends — anyone — can put money into your RDSP, up to a lifetime limit of $200,000.
• Contributions are not tax-deductible (unlike an RRSP). But investment growth inside the plan is not taxed while it stays in the plan.
• At withdrawal, your original contributions come back to you tax-free. The grants, bonds, and investment earnings are taxed as the beneficiary's income in the year they are paid out.

RDSP rules (Canada.ca)

To be the beneficiary (the person the plan is for), all of the following must be true:

• You are approved for the Disability Tax Credit (DTC).
• You have a valid Social Insurance Number (SIN).
• You are a resident of Canada (when the plan is opened and when each contribution is made).
• You are under 60 — an RDSP can be opened for someone until the end of the year they turn 59.

Who can be the plan holder (the person who opens and manages the plan):

• If the beneficiary is a child (under the age of majority in their province): a legal parent, or a public department, agency, or institution legally authorized to act for them.
• If the beneficiary is an adult and contractually competent: the beneficiary themselves.
• If the beneficiary is an adult who is not contractually competent: a qualifying family member (a parent, spouse or common-law partner, or sibling) or a legal representative who is legally authorized to act for them.

The plan holder does not have to live in Canada, but the beneficiary must be a Canadian resident when the plan is opened and when each contribution is made.

Eligibility and contributions (Canada.ca)

Opening an RDSP is a six-step process. Take them in order:

Opening an RDSP (Canada.ca)

The Canada Disability Savings Grant (CDSG) is matching money: when you contribute, the government also deposits money into the plan. The match rate depends on family income and the amount contributed.

The grant is paid until December 31 of the year the beneficiary turns 49. The maximum is $3,500 per year and $70,000 over a lifetime.

For 2026 (based on the family income reported on the 2024 tax return):

To receive the maximum $3,500 grant when income is $117,045 or less, you contribute $1,500. Contributions above the amount needed for the maximum grant do not receive a match.

Carry-forward: If you did not receive the full grant in past DTC-approved years, you can catch up on the last 10 years of unused grant entitlement. Catching up requires making contributions. There is a $10,500 annual limit on carry-forward grant entitlement.

Grant and bond rules (Canada.ca)·2026 income matching rates (Canada.ca)

The Canada Disability Savings Bond (CDSB) is money the government deposits into the RDSPs of low- and modest-income beneficiaries. You do not need to make any contribution to receive the bond.

The bond is paid until December 31 of the year the beneficiary turns 49. The maximum is $1,000 per year and $20,000 over a lifetime.

For 2026 (based on the family income reported on the 2024 tax return):

Like the grant, unused bond entitlements from the last 10 DTC-approved years can be carried forward — no contribution required.

How much you could get (Canada.ca)

If you were approved for the Disability Tax Credit (DTC) for any of the past 10 years but did not receive the full Canada Disability Savings Grant or Bond you were entitled to, you can carry forward and still receive those unused entitlements — for up to 10 previous years.

This is called carry-forward. It helps people who were DTC-approved for past years but only recently opened an RDSP, recently became DTC-approved, or could not contribute the maximum in earlier years. Your financial institution applies for the grant and bond on your behalf when you open the plan or contribute.

Carry-forward is one of the most valuable — and most often missed — features of the RDSP. If you were DTC-approved for past years and did not receive the full grant or bond, ask your financial institution to apply the carry-forward when you open or contribute to your plan.

Carry-forward of grants and bonds (Canada.ca)

• Who can contribute: Anyone — the beneficiary, parents, grandparents, siblings, friends — with the written consent of the plan holder.
• Lifetime limit: $200,000. There is no annual contribution limit.
• Not tax-deductible: Unlike an RRSP, you cannot deduct RDSP contributions from your taxable income.
• Age limit: Contributions can be made until the end of the year the beneficiary turns 59.
• Grants stop earlier: Matching grants are only paid on contributions made until December 31 of the year the beneficiary turns 49.

Contributions above the amount needed to earn the maximum grant are called "unassisted contributions." They do not receive a match and cannot be withdrawn without triggering the grant/bond repayment rule.

Contribution limits (Canada.ca)

The RDSP is a long-term plan, so withdrawals are designed to begin later in life. There are two types of payments:

The 10-year repayment rule (assistance holdback). The government wants grants and bonds to stay in the plan for the long term. If you make a withdrawal that includes grants or bonds paid into the plan within the last 10 years, you generally must repay the government. The amount repaid is the lesser of:

• 3 times the amount you withdrew, or
• the total grants and bonds paid in the last 10 years (the "assistance holdback amount").

Tax on withdrawals: Your original contributions are returned tax-free. Only the grants, bonds, and investment earnings are taxed as the beneficiary's income in the year they are paid out.

Types of payments from an RDSP (Canada.ca)·Withdrawing money from your plan (Canada.ca)

Many people worry that saving in an RDSP will cost them their other benefits. Here is what the Government of Canada states, and where you need to be careful:

We do not make blanket claims here because the rules genuinely differ by province and program. When in doubt, ask before you withdraw.

RDSP withdrawals and provincial benefits (Canada.ca)

If your child qualifies for the DTC, an RDSP can be one of the most powerful tools you set up for them. Here is what parents should know:

• A parent or legal representative opens the plan as the holder; the child is the beneficiary.
• Until the end of the year the beneficiary turns 18, grant and bond amounts are based on the parents' or guardians' combined income. Starting the year the beneficiary turns 19, they are based on the beneficiary's own income (plus a spouse's, if applicable).
• File tax returns early. To keep receiving the correct grant and bond after age 18, the beneficiary should start filing personal tax returns every year beginning in the year they turn 17.
• Anyone can contribute — parents, grandparents, other family, and friends — up to the $200,000 lifetime limit.
• Time matters. Grants and bonds are paid only until the year the beneficiary turns 49, so starting early means more years of government money.

See also our Caregiver Guide for broader support available to families.

Adults can open and manage their own RDSP, or have a qualifying family member do it for them:

• An adult who is contractually competent can be their own plan holder and open the plan at a participating financial institution.
• An adult who is not contractually competent can have a qualifying family member (parent, spouse/common-law partner, or sibling) or a legal representative act as plan holder.
• From age 19, grant and bond amounts are based on the beneficiary's own income plus a spouse's, if applicable. The beneficiary must have filed tax returns for at least the previous two years and continue to file each year.
• You can qualify for the bond without contributing if your family income is within the bond threshold — the government deposits it automatically.
• The plan must be opened before the end of the year you turn 59.

The DTC is sometimes approved for a limited number of years and must be renewed. If the beneficiary is no longer DTC-approved, here is what happens to the RDSP:

• Since 2021, the plan holder can choose to keep the plan open or close it.
• If the plan stays open: no new contributions are allowed, and no new grants or bonds will be paid. Money already in the plan stays.
• You do not have to repay grants and bonds already in the plan simply because DTC approval was lost.
• The plan can remain open under these restricted rules. A Specified Disability Savings Plan (SDSP) is a separate election available to beneficiaries with a life expectancy of 5 years or less — it is not what happens automatically when the DTC expires. See the withdrawals section for the SDSP rules.
• Withdrawals before age 60 while not DTC-approved may still trigger repayment of grants and bonds from the relevant period — the exact period depends on the beneficiary's age when DTC approval was lost. Confirm the amount with your financial institution or ESDC.
• If DTC approval is regained, the plan returns to normal: contributions and grants/bonds can resume.

Money from a deceased parent's or grandparent's registered retirement savings plan can be rolled over into the RDSP within 4 years after the year the beneficiary loses DTC approval.

If you lose DTC approval (Canada.ca)·Specified Disability Savings Plan (Canada.ca)

These three registered accounts serve different purposes. You can hold more than one at the same time.