Financial Planning -> Disabilities -> RDSPs -> Termination of an RDSP
Termination of a Registered Disability Savings Plan (RDSP)
When a registered disability savings plan (RDSP) is terminated, any amounts remaining in the plan, after any required repayments of CDSG and/or CDSB, are to be paid to the beneficiary or the beneficiary's estate by the end of the following year.
An RDSP will be terminated if
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The RDSP may be de-registered if it ceases to qualify for status as an RDSP because it does not comply with all the terms and conditions that were put in place when the plan was set up, or if it does not comply with rules in the Income Tax Act. This will result in a deemed disability assistance payment equal to
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According to the Department of Finance explanatory notes, the assistance holdback amount would have to be repaid to the government when the RDSP is terminated or de-registered. The rule for this is expected to be in the Canada Disability Savings Act Regulations, which are not yet available.
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Revised: May 27, 2018