Add/Edit an RDSP

RDSPs are meant to be retirement savings accounts for disabled individuals. The beneficiary of the account must be eligible for the Disability Tax Credit to qualify, and there can only be one RDSP per individual. Funds in an RDSP account grow tax-free. We allow RDSPs for yourself, your spouse and any disabled dependents, opened in the past or the future.

The holder of the RDSP can be the beneficiary if over 18 and competent to manage the account, and/or the beneficiary's parents or grandparents. Anyone can contribute to an existing RDSP with permission from the holder. We allow the holder to be "Other", which is useful if the RDSP is your or your spouses' and the holder is your parent or grandparent.

If the dates when the Beneficiary first qualified for the Disability Tax Credit (DTC) and the date RDSP account opened indicate there is a possibility for carry-forward grants and bonds amounts to be added to the RDSP, you will be directed to enter additional information on past income and past contributions for the relevant years for the calculation

DAP: Disability Assistance Payments. You must specify if the RDSP allows for one-off payments to the beneficiary. Such withdrawals can be made in any year but they are subjected to caps. A DAP is not permitted if, after the payment, the fair market value of the property held by the RDSP would be less than the assistance holdback amount for the RDSP. The assistance holdback amount is the sum of all grants and bonds that were received in the last 10 years and not paid back. When a DAP is paid, the proportional repayment rule is applies. This says that an amount of 3 times the DAP in grants and bonds must additionally be withdrawn and returned to the government. It is, therefore, best to not make any payments from the RDSP for at least 10 years after the last grant or bond was received. Grant and bond repayment assignments are also made from the earliest first, similarly as the carry forward assignments. To avoid penalties, DAP payments will not be made in the TIME MACHINE if there are grant or bond repayments to be made.