Registered Disability Savings Plan (RDSP)

General

A Registered Disability Savings Plan (RDSP) is a savings program designed to help eligible Canadians with disabilities and their families save for long-term financial needs. An RDSP combines flexibility, tax-deferred investment growth and direct government assistance to help you reach your savings goals.

An RBC RDSP can hold a variety of investments, including Guaranteed Investment Certificates (GICs), mutual funds, portfolio solutions and savings deposits.

No, there is not a special provision in the Income Tax Act to move money from an RESP to an RDSP. We recommend speaking with an advisor if you have an RESP beneficiary who may not be able to use the funds in the RESP.

The RDSP is eligible for CDIC coverage on any savings or GICs held within the plan, subject to the usual requirements. For more information, please visit the CDIC website.

There is a service fee of $25.00 ($50.00 if transferred in the first twelve months of operation) for the transfer of property from an RDSP to a company that is not a subsidiary of Royal Bank of Canada. This fee is subject to change. In the event this fee changes or new fees are introduced, RBC will notify clients by mail or electronically at least 30 days before the effective date of the change.

Opening an Account

You can open an RDSP and be the plan holder if you are:

  • A person with a disability who is the age of majority and has the capacity to manage his or her finances; or
  • The legal parent of a child with a disability who has not reached the age of majority; or
  • A guardian or other representative who is legally authorized to act on behalf of a person with a disability

A mobile RBC Financial Planner can help you open an RDSP, meeting with you at your home, office, café or local RBC Royal Bank branch. A Financial Planner will get to know your unique circumstances and create a plan that’s right for you or your loved one.

An RDSP may have more than one plan holder, however an RBC RDSP permits one plan holder.

A grandparent, another family member or a friend can open an RDSP for an individual with a disability only if he or she has been legally appointed as a guardian of the beneficiary or is otherwise legally authorized to act for the beneficiary.

Yes, but only if the parent has been legally appointed as a guardian of the beneficiary or is otherwise legally authorized to act for the beneficiary. If a parent opens an RDSP when their child is a minor, the parent can remain as plan holder when the child later reaches the age of majority.

If the beneficiary does not have the legal capacity to manage their finances, the plan holder must be a legally appointed guardian of the beneficiary, or otherwise be legally authorized to act for the beneficiary. A qualifying family member (a legal parent, of the beneficiary or a spouse or common-law partner) may be eligible to open an RDSP for an adult individual (beneficiary) who does not have the capacity to open an RDSP as the holder. This must be opened before January 1, 2019.

Beneficiaries

An RDSP beneficiary must have a valid Social Insurance Number (SIN) and be:

  • Eligible for the Disability Tax Credit (DTC)—for details on the DTC, visit the Canada Revenue Agency (CRA)
  • A Canadian resident when the plan is set up and when each contribution is made
  • Under age 60 when the plan is opened, since contributions cannot be accepted after the end of the year the beneficiary turns 59

Yes, the person with a disability can be the beneficiary and plan holder provided he or she has reached the age of majority in the province or territory where they reside and have the legal capacity to manage their finances.

There is no minimum age to be eligible for an RDSP.

Yes, if a beneficiary has reached the age of majority and has the legal capacity to handle his or her own financial affairs, the parent can allow the beneficiary to replace the parent as the plan holder by completing the appropriate documents.

Contributions

There is not an annual limit; however, there is a lifetime limit of $200,000.

Yes, you can contribute the full $200,000 in one year, but doing so may forfeit your ability to maximize on the Canada Disability Savings Grant, which is provided on a "matched" basis to a maximum annual limit. As well, the contribution is irrevocable.

You can contribute to an existing RDSP online through RBC Online Banking or the RBC Mobile app(opens new window) if you have an RBC Royal Bank chequing or savings account:

Yes, you can set up an RBC RDSP-Matic, which lets you specify automatic contributions (weekly, monthly, etc.) to your RDSP using funds from your RBC Royal Bank chequing or savings account.

You can start, change or stop your RDSP-Matic contributions in one of three ways:

Grants & Bonds

The CDSG is a federal government grant that provides matching RDSP contributions of 100%, 200% or 300%, up to $3,500 annually, based on a family's net income. There is a lifetime limit of $70,000. See RDSP Grants and Bonds.

The CDSB from the federal government is paid on an annual basis into the RDSPs of low-income families, based on net family income (Tax-returns must be filed to be eligible for the CDSB). No contributions are required to be eligible for the CDSB, which was created to assist families who may not have the resources to make a contribution. The maximum annual CDSB payment is $1,000, and the lifetime maximum is $20,000. See RDSP Grants and Bonds.

No, after age 49, RDSP beneficiaries will no longer be eligible to receive monies from the Canada Disability Savings Grant or Canada Disability Savings Bond.

Withdrawals

Each withdrawal is a blend of taxable and non-taxable amounts. Contributions to the plan that are withdrawn are not included in the income of the beneficiary. The Canada Disability Savings Grant, Canada Disability Savings Bond and investment earnings in the plan are included in the beneficiary's income for tax purposes when they are paid out of the RDSP.

Managing Your Investments Online

You can view your RDSP account information, balances, Investor Profile, transaction history and download documents through RBC Online Banking.

To start, change or stop your RDSP-Matic contributions Sign in to Online Banking: Choose your RDSP, and click "Manage Pre-Authorized Contributions" from the left menu.

Yes, you can set up an RBC RDSP-Matic, which lets you specify automatic contributions (weekly, monthly, etc.) to your RDSP using funds from your RBC Royal Bank chequing or savings account.