Financial Planning
Disabilities

Registered Disability Savings Plans (RDSPs)

Income Tax Act s. 146.4, Canada Disability Savings Act and Regulations

Registered disability savings plans (RDSPs) were introduced in the 2007 Federal Budget, and were available late in 2008.

The 2008 deadline for making contributions to an RDSP, and applying for the 2008 RDSP Grant and Bond, was extended from December 31, 2008 to March 2, 2009.  The 2009 RDSP contribution year began March 3, 2009.  See Important Dates on the Canada Revenue (CRA) website.

The information presented here is based on the following sources:

On October 21, 2011, the Federal government announced the launch of the Government of Canada's review of the Registered Disability Savings Plan.  Individuals and groups are invited to share their views with the government.  The closing date for comments is December 16, 2011.  See the news release for more information.

The Expert Panel which recommended RDSPs also recommend that, for the RDSP program to be effective, RDSP assets and income should not disqualify a plan beneficiary from receiving provincial or territorial income support provided to persons with disabilities.  BC has already made legislation changes to this effect.  Alberta, Manitoba and Ontario have expressed plans to do the same.  If this affects you, check with your provincial government to determine how they are treating the RDSP assets and income in relation to income support programs.

See the following articles regarding RDSPs:

Who can set up an RDSP?

Payments into the RDSP

Payments out of the RDSP

Taxable amount of disability assistance payments

Termination of the RDSP

Rollovers to an RDSP from the RRSP/RRIF or RPP of a deceased person

See also - links to all information on Taxtips.ca related to persons with disabilities.

Revised: January 17, 2012