The Registered Disability Savings Plan (RDSP) is a registered savings plan for people with disabilities to help them save for their long-term financial security. Additionally, the federal government offers incentives and grants in the form of the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB) that puts more money into your plan. Any amount paid into your RDSP from the CDSG or CDSB must remain in your plan for 10 years.
You might have to make repayments to the Employment and Social Development Canada (ESDC) if you withdrew disability assistance payments (DAP) from your RDSP in 2017 (before the 10-year period has lapsed) or if one of the following situations applies to you:
- you voluntary closed your RDSP
- the plan was deregistered or
- you’re no longer eligible to receive the disability amount
How much will I have to repay?
For every $1 of disability assistance payments (DAP) withdrawn from your RDSP after January 1, 2014, you’ll need to repay $3 from any CDSG or CDSB that was paid into the plan within ten years of the withdrawal, up to the assistance holdback amount. This amount is generally defined as the total amount of bonds and grants that were paid into an RDSP within a given 10-year period.
Be sure to keep a record of the RDSP repayment amount you made to the ESDC for the year.
Where can I learn more?
- Registered disability savings plan (RDSP) (CRA website)