Registered Disability Savings Plan (RDSP) - Overview
A Registered Disability Savings Plan (RDSP) is a registered long-term savings plan to help Canadians with severe and prolonged disabilities and their families save for the future. The plan allows earnings on contributions to grow tax-free while in the plan and is a trust arrangement between a holder and a trust company in Canada.
The RDSP contract includes terms and conditions that the holder must agree to, for the continued registration and operation of the plan, such as:
- contribution eligibility and limit;
- minimum withdrawal requirements and maximum withdrawal limits;
- conditions for requesting elections in the RDSP; and
- holder eligibility.
- whether contributions will be intermittent or on a regular basis (at the discretion of the holder);
- investment options; and
- whether a Disability Assistance Payment (DAP), which is not a Lifetime Disability Assistance Payment (LDAP) is allowed.
- Administers the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB) programs.
- Verifies the beneficiary’s social insurance number (SIN) and the holder’s SIN or business number.