Funding your child’s therapy and saving for their future

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Funding your child’s therapy and saving for their future

If you are a Canadian resident who qualifies for the Disability Tax Credit (Disability Amount), you may also be eligible to open a Registered Disability Savings Plan (RDSP) and receive money from the Government of Canada in the form of grants and bonds to help you save for the future.

The RDSP is a long-term savings plan that must be opened before the end of the calendar year in which you turn 59. Earnings accumulate tax-free until money is taken out of the RDSP*. There is no limit to how much you may contribute each year, but there is a lifetime contribution limit of $200,000. Parents or guardians may open an RDSP for a child under the age of majority. With written permission from the RDSP holder, anyone may contribute to the RDSP. To help you or a loved one save, the Government of Canada will pay the following into your RDSP:

  • Matching grants of up to $3,500 per year, depending on the amount contributed and your family income. The maximum government grant contribution is $70,000 over your lifetime. Matching grants are available until the end of the calendar year in which you turn 49.
    Bonds of up to $1,000 per year for low-income and modest-income beneficiaries. No contributions are necessary to receive the bond. The maximum government bond contribution is $20,000 over your lifetime. If you qualify, bonds will be paid into your RDSP until the end of the calendar year in which you turn 49.
  • Money paid out of an RDSP does not affect eligibility for other federal benefits such as the Canada Child Tax Benefit, the Goods and Services Tax credit, Old Age Security or Employment Insurance. Also, all provinces and territories have exempted RDSP income and assets—either in part or in full—for the purpose of assessing eligibility for provincial and territorial programs and services.

Call: 1 800 O-Canada (1-800-622-6232)

TTY: 1-800-926-9105

Visit: http://www.hrsdc.gc.ca/disabilitysavings

Email: rdsp-reei@hrsdc-rhdcc.gc.ca

Learn about other funding options here.

We understand you want fast access to information and services. To get started, complete our Request More Information form online here or call 1.866.653.2397. One of our friendly team members will be happy to help you.

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