Registered Disability Savings Plan (RDSP): What Is It?

Registered Disability Savings Plan (RDSP): What Is It?

Physical and mental disabilities make it challenging for individuals to maintain financial security or work. A Registered Disability Savings Plan (RDSP) gives disabled citizens a way to save money. Individuals wondering, “What is an RDSP?” may be eligible to start a savings plan, while ineligible citizens can contribute to other types of funds.

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What Is an RDSP?

Registered Disability Savings Plan or RDSP is a savings plan that allows disabled Canadians to prepare financially for their future. It operates similarly to the Registered Retirement Savings Plan (RRSP). Holders receive monetary deposits over an extended period.

In addition to disabled people opening and funding an RDSP, family members of these individuals can also open and contribute to an RDSP on their behalf. Caregivers may open an RDSP to prepare to meet the healthcare demands of a disabled loved one, and those with disabilities may save or use the money to pay for regular expenses as they age.

Contributions can continue until the total contributed funds amount to $200,000 or the beneficiary turns 60. Government grants stop at age 49 and have a $90,000 lifetime limit.

Who Qualifies for an RDSP?

Those benefitting from a Registered Disability Savings Plan must meet all eligibility requirements. 

You must be eligible for the Disability Tax Credit (DTC). This tax credit reduces income tax for impaired individuals and proves disability status. Those eligible for this credit have serious, extended impairment or severe impediments regarding walking, dressing, speaking, mental functions, feeding, and more. 

Additional qualifications include:

  • Possess a valid Social Insurance Number (SIN)
  • Be younger than 60 years
  • Live in Canada

Benefits of an RDSP

An essential aspect when learning about “What is an RDSP?” is its benefits. Between investment location flexibility, government financial assistance, solutions for low-income individuals, significant contribution freedom, and effortless transfer of wealth, RDSPs offer many reasons to invest.

More Investment Choices

Government Benefits and Grants

Low-Income Assistance

Contribution Freedom

Wealth Transferral


Group Enroll: Registered Disability Savings Plan Comparison Services

Group Enroll is a leading insurance broker offering comparison and selection assistance for disability insurance plans, Registered Disability Savings Plans, and more. Our team helps you locate and select the best RDSP available in your province by comparing competitive rates from top providers.

If you’re still wondering, “What is an RDSP?” the professionals at Group Enroll can further explain. We’ll answer all your questions regarding Registered Disability Savings Plans and help your employees and their loved ones get the solutions they deserve.

Fill out our quote form to get top quotes on group RDSP rates. Find Group Enroll at 10 Great Gulf Drive, Unit 5, Vaughan, ON, L4K 5W1, and contact our expert insurance brokers by emailing