An individual approved for the disability tax credit is eligible to be the beneficiary of a Registered Disability Savings Plan (RDSP).
Opening an RDSP. A parent or legal representative of a child with a disability can open an RDSP and be the plan holder when the beneficiary is under the age of majority. A beneficiary who has reached the age of majority can be the plan holder if they have the capacity to manage their finances. Otherwise, their legal representative would be the plan holder.
Contributions. A plan holder can contribute any amount—there’s no annual maximum. Other individuals may contribute with the plan holder’s written consent. The lifetime contribution limit is $200,000.
Investments. An RDSP can hold the same investments as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA), and those investments grow tax-deferred.
Withdrawals. RDSP withdrawals are called disability assistance payments. Contribution amounts are not taxable, but grant money and investment income are taxable to the beneficiary.
Grant assistance. When you contribute to an RDSP, the Canada Disability Savings Grant matches part of your contribution. Depending on the beneficiary’s family income, the maximum grant is either $3,500 or $1,000 per year, with a lifetime maximum of $70,000.
This article is excerpted from the Well‑Advised Fall 2026 Newsletter and published on behalf of your financial advisor for clients residing in jurisdictions where they are registered. This material is provided solely for informational and educational purposes and is not to be construed as an offer or solicitation for the sale or purchase of any securities or as providing individual investment, tax or legal advice. Consult your professional advisor(s) prior to acting on the basis of this material. Insurance products are available through advisors registered with applicable insurance regulators. In considering any particular investment, please remember that past performance is no guarantee of future performance. Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness. All opinions expressed and data provided herein are subject to change without notice. Neither CI Assante Wealth Management Ltd. their affiliates or their respective officers, directors, employees or advisors are responsible in any way for any damages or losses of any kind whatsoever in respect of the use of this material. CI Assante Wealth Management is a registered business name of Assante Wealth Management (Canada) Ltd. CI Assante Wealth Management Ltd is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization.
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