- Introduced by the Federal government in 2007, and available to the public since 2008, a Registered Disability Savings Plan (RDSP) is a savings plan designed specifically for people with disabilities in Canada.
- This tax-deferred savings vehicle is intended to assist parents and others in planning for the long-term financial security of their relatives and others with disabilities that are eligible for the Disability Tax Credit (DTC).
- Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the Beneficiary turns 49.
- Contributions that are withdrawn are not to be included as income for the Beneficiary when paid out of an RDSP. However, the Canada Disability Savings Grant (CDSG), Canada Disability Savings Bond (CDSB) and investment income earned in the plan will be included in the Beneficiary’s income for tax purposes when paid out of the RDSP.