An RDSP is a long-term savings plan to help a beneficiary with a disability save for their future. A beneficiary of an RDSP must:
Be eligible for he Disability Tax Credit (DTC)
Be under the age of 60
Have a valid social insurance number
There is no limit to the amount that can be contributed to an RDSP each year, but you cannot contribute more than $200,000 over the lifetime of the plan.
Only the plan holder can authorize contributions to the plan. The beneficiary can act as the plan holder unless they are under the age of majority. In that case, the plan holder can be a parent or legal guardian. Contributions to the plan are not tax-deductible.
Contributions to an RDSP may qualify for the Canada Disability Savings Grant (CDSG) and/or the Canada Disability Savings Bond (CDSB) offered by the Government of Canada. Click here for more information.