Question 1

What is an RDSP?

Accepted Answer

A Registered Disability Savings Plan is a registered savings and investment plan created by the Government of Canada to help build long-term savings for a person who is eligible for the Disability Tax Credit. Money grows inside the plan on a tax-deferred basis, and the plan may also receive government grants and bonds.

Question 2

Who qualifies for an RDSP?

Accepted Answer

Generally, a beneficiary must be approved for the Disability Tax Credit, be a Canadian resident with a Social Insurance Number, and be under 60 at the time the plan is opened. Final eligibility is determined by Government of Canada rules and the plan provider.

Question 3

What is the Disability Tax Credit?

Accepted Answer

The Disability Tax Credit (DTC) is a federal tax credit for people with a severe and prolonged impairment, certified by a medical practitioner and approved by the Canada Revenue Agency. DTC approval is normally required before an RDSP can be opened.

Question 4

Can I open an RDSP if I don't have the DTC?

Accepted Answer

Generally, no. DTC approval is normally required first. If an application is pending or you are unsure of your status, we can walk you through where to check and what the process typically looks like, and revisit the RDSP once approval is confirmed.

Question 5

How much can the government contribute to an RDSP?

Accepted Answer

Program maximums are up to $70,000 in lifetime Canada Disability Savings Grants and up to $20,000 in lifetime Canada Disability Savings Bonds. These are lifetime program limits, not guaranteed amounts; what an individual plan actually receives depends on Government of Canada rules, family income, contributions, age and available carry-forward entitlement.

Question 6

What is the Canada Disability Savings Grant?

Accepted Answer

The grant is a matching amount the Government of Canada may pay into an RDSP based on personal contributions and family income. Matching rates vary, and unused entitlement can often be carried forward for a limited number of years.

Question 7

What is the Canada Disability Savings Bond?

Accepted Answer

The bond is an amount the Government of Canada may pay into an RDSP for beneficiaries with lower family income. It is based on income rather than on contributions.

Question 8

Do I have to contribute to receive the bond?

Accepted Answer

No. Qualifying beneficiaries may receive Canada Disability Savings Bonds without making personal contributions, provided the plan is open and the required tax filings and eligibility conditions are met.

Question 9

Can I have more than one RDSP?

Accepted Answer

An RDSP beneficiary can generally have only one RDSP open at a time. That is why it is worth understanding how an existing plan is structured before opening anything new.

Question 10

Can I transfer an existing RDSP?

Accepted Answer

Yes. Where appropriate for the beneficiary's circumstances, an RDSP can be transferred directly from one provider to another for the same beneficiary. The full plan is transferred and the previous plan is closed once the transfer is complete. Whether a transfer makes sense is a suitability question we would review together.

Question 11

Will transferring an RDSP affect my government grants and bonds?

Accepted Answer

Grants and bonds already paid into the plan generally move with the plan on a direct transfer, and entitlement history follows the beneficiary. Specific reporting and timing details are handled between the two providers, and we would confirm them for your situation before any action.

Question 12

Can grandparents contribute to an RDSP?

Accepted Answer

Contributions can generally be made by anyone with written permission from the plan holder, including grandparents and other family members, subject to the lifetime contribution limit for the beneficiary.

Question 13

What can an RDSP invest in?

Accepted Answer

That depends on the provider. RDSPs may hold options such as savings deposits, guaranteed investment certificates, mutual funds or segregated fund contracts. Different structures offer different features, costs and risks, and the right choice depends on the beneficiary's circumstances and investor profile.

Question 14

What happens when the beneficiary turns 49?

Accepted Answer

The year the beneficiary turns 49 is generally the last year contributions can attract grants and bonds, so contribution planning in the years leading up to it can matter. Reviewing the plan well before that point is often useful.

Question 15

What happens when the beneficiary turns 60?

Accepted Answer

By the end of the year the beneficiary turns 60, regular withdrawals from the plan must begin. Withdrawal planning is one of the areas we look at in a long-term RDSP strategy.

Question 16

How are RDSP withdrawals taxed?

Accepted Answer

Personal contributions come out tax-free. Government grants and bonds, plus investment growth, are generally taxable to the beneficiary in the year received. Withdrawals may also trigger repayment rules if grants or bonds were paid into the plan in the previous ten years. Speak with a qualified tax professional about your situation.

Question 17

What is a segregated fund?

Accepted Answer

A segregated fund is an investment fund offered through an insurance contract. It provides access to professionally managed investment options and includes insurance features, such as maturity and death benefit guarantees, subject to the terms of the contract.

Question 18

What is the difference between an RDSP at a bank and an RDSP using segregated funds?

Accepted Answer

They are different structures rather than better or worse ones. Bank and credit union plans typically offer deposits, GICs or mutual funds; an insurance-company plan holds a segregated fund contract that adds contractual insurance features. Features, costs, guarantees and risks differ, so we help determine what is appropriate for your circumstances.

Question 19

Does Coach Maiden offer virtual RDSP appointments?

Accepted Answer

Yes. RDSP reviews are conducted virtually across the provinces where Coach Maiden is licensed, so families can meet from home with statements in hand.

You Only Get One RDSP.
Make Sure You’re Making the Most of It.

Your RDSP May Come With More Than Your Own Contributions

Canada Disability Savings Grant

Canada Disability Savings Bond

Potential Lifetime Government Grants + Bonds

Where Are You With Your RDSP?

I Don’t Have an RDSP Yet

I Already Have an RDSP

Already Have an RDSP? It May Be Worth a Second Look.

During an RDSP review, we can look at:

Your RDSP Is an Account. What You Hold Inside It Matters Too.

Your RDSP Review in 4 Simple Steps

Tell Us Where You Are

Meet With Coach Maiden

Review Your Options

Build the Right Plan

Tell Us About Your RDSP Situation

Who is the RDSP planning for?

An Insurance-Company RDSP Option

The RDSP Is Part of a Bigger Financial Picture

Meet Coach Maiden

Frequently Asked Questions

Your RDSP Deserves More Than “Set It and Forget It.”

You Only Get One RDSP.Make Sure You’re Making the Most of It.