RDSP Basics when living with diabetes


What is the Registered Disability Savings Plan?

The Registered Disability Savings Plan (RDSP) really is as great as it sounds. It provides tax-free money for people who have qualified for the Disability Tax Credit.  Here is a basic rundown on the plan and how you can start enjoying free money from the Canadian government.

The Registered Disability Savings Plan (RDSP)was designed to provide long-term financial security for people with a disability.  

Tax-deferred investment growth, along with generous government grants and bonds make the RDSP a powerful investment tool. “There must be a catch,” is a familiar comment advocates often hear.  It comes as a surprise when people learn they can often get thousands and tens of thousands of dollars–free!

One of the most attractive reasons to open up an RDSP is to get access to the annual Canada Disability Saving Grants (CDSGs).  These grants can provide 100%, 200% or 300% matching grants.  Individual amounts depend on both the beneficiary’s family income and the amount contributed, up to a lifetime maximum CDSG limit of $70,000*

Who is Eligible for a RDSP?

In order to qualify for an RDSP, you must have also qualified for the Disability Tax Credit.  

When can I  begin taking money back out?

You can withdraw the money that you put into an RDSP at any time.  To receive the full amount of your grant money, funds must be left in the account for 10 years.  (Grant money received in 2013 are not eligible for use until 2023). 

How do I open a Registered Disability Savings Plan?

Contributions for RDSPs can be made through your local financial institution and invested in a way that best suits you and your goals.

How much money will I get from the government?

Exact amounts vary based on individual returns and the amount of money contributed. The annual Canada Disability Savings Grants (CDSGs) however can provide 100%, 200% or 300% matching grants, up to a lifetime maximum CDSG limit of $70,000.
In order to qualify for the Registered Disability Savings Plan, you must first have been approved for the Disability Tax Credit

Learn if you might qualify for the disability tax credit by taking our free quiz.

This information has been provided by Avi Yoffe, a mother of a child with Type 1 diabetes.  She has had the pleasure of educating families with disabled people (adults and children), on how to receive the maximum amount of disability tax credit as well as RDSP Grants and Bonds.