top of page

Maximizing the benefits of an RDSP: A step-by-step guide

A Registered Disability Savings Plan (RDSP) is a savings plan for individuals with disabilities in Canada. RDSPs are designed to help individuals with disabilities and their families save for the future and provide financial support for the person with a disability.

To maximize the benefits of an RDSP, it's important to follow a few key steps.

  1. Understand the eligibility requirements: To be eligible for an RDSP, an individual must be a Canadian resident under the age of 60 and eligible for the Disability Tax Credit (DTC). They must also have a valid social insurance number (SIN).

  2. Choose the right financial institution: RDSPs are available through banks, credit unions, and other financial institutions. It's important to choose a financial institution that offers the features and benefits that are most important to you, such as low fees, a variety of investment options, and excellent customer service.

  3. Contribute to the RDSP: To maximize the benefits of an RDSP, it's important to contribute to the plan on a regular basis. Contributions to an RDSP are not tax-deductible, but the government will provide matching grants and bonds based on the individual's income and the amount contributed to the plan.

  4. Take advantage of government incentives: The Canadian government offers several incentives to encourage individuals to save in an RDSP. For example, the Canada Disability Savings Grant provides matching grants of up to 300% on contributions to an RDSP, and the Canada Disability Savings Bond provides bonds of up to $1,000 per year to individuals with low income and modest assets.

  5. Review and update the RDSP regularly: To ensure that an RDSP continues to meet the individual's needs and goals, it's important to review and update the plan regularly. This can include changing the investments in the plan, updating the beneficiary, or making other changes as needed.

In conclusion, to maximize the benefits of an RDSP, it's important to understand the eligibility requirements, choose the right financial institution, contribute to the plan, take advantage of government incentives, and review and update the plan regularly.

By following these steps, individuals and their families can make the most of their RDSP and ensure that it continues to support the individual with a disability.


bottom of page