Frequently asked questions

What is a RDSP?

The Registered Disability Saving Plan (RDSP) allows disabled people and their close ones to save to ensure a good quality of life over the long term.

Indeed, to encourage the Canadians to save, the Canada Disability Saving Grant (CDSG) multiplies the contribution made for the benefit of disabled individuals under 49 years of age up $3,500 for a maximum of $70,000 over the lifetime.

Moreover, did you know that nearly 750,000 Canadians are eligible to the RDSP, but less than one in eight is aware of this program?

In addition, the Canada Disability Savings Bond is paid to a person with low income. This annual grant of $1,000 for a maximum of $20,000 over the lifetime is available even if no contribution is made into the RDSP!

Will my social solidarity or old-age pension benefits be reduced if I choose to invest in a RDSP?

No. When the time of the withdrawals comes, the Finandicap team will help you establish a tailored solution in order not to affect your benefits.

Can I open a RDSP even if I have no money to invest in it?

Absolutely. It is possible that you are eligible to the Canada Disability Savings Bond if you have a low income. Those bonds will be paid into your RDSP.

How much do Finandicap’s services cost?

We will take the time to discuss your situation for free in a first meeting.

If you choose to be our client, our consultations are free of direct charge as we receive commissions from the financial institutions we represent.

What to do when the disability tax credit has been denied?

Canadians whose claim for a disability tax credit has been denied have the following options for following up on their claim.

You can call the Canada Revenue Agency (CRA) to ask any questions or to discuss your request. If you are in Canada or the United States, call 1‑800‑959‑7383. From anywhere else, call 613-940-8496. The CRA accepts collect calls. If you are using a teletypewriter, call 1-800-665-0354 during normal operating hours.

If your medical situation has changed, request a review of your request by contacting the CRA in writing. Include any medical information you have not already submitted, such as a new or updated medical report, or a letter from a health care professional who is familiar with your situation.

You can also file an official objection to appeal the decision within 90 days of the Canada Revenue Agency’s notice of determination being mailed. For more information on this process, see the File a Notice of Objection – Income Tax page on

The CRA reviews all disability tax credit applications it receives.

For more information, see the Disability Tax Credit page on

What is a “registered” plan?

An account or plan registered with the Canada Revenue Agency (CRA) that allows investments to grow with tax deferral or, in the case of a TFSA, tax exemption.

What is a Canada Disability Savings Grant (CDSG)?

Through the Canada Disability Savings Grant (CDSG), the federal government is the main contributor to the RDSP. The beneficiary’s contributions make him eligible for a CDSG, which can reach an annual maximum threshold of $3,500. The rate of such contributions is determined according to the net family income. The contribution stops being paid by December 31 of the year the beneficiary turns 49 years of age. In other cases, the contribution will cease being paid into an RDSP after a 20-year payment period has been reached by the federal government.

Since 2013, if the annual net income does not exceed $87,123, the federal government will pay the following amounts:

• $3 for each dollar contributed on the first $500

• $2 for each dollar contributed on the next $1,000

For families whose annual net income exceeds $87,123, the federal government will pay the following amount:

• $1 for each dollar contributed, up to a maximum of $1,000

The lifetime maximum of the Canada Disability Savings Grant is fixed at $70,000 per beneficiary.

Why didn’t I hear about RDSP earlier?

The RDSP exists since 2008 and is still largely unknown. Please do not hesitate to visit the government website to validate the details.

Finandicap chose to contribute as much as possible to raise awareness on the RDSP, so a greater number of disabled people can benefit from the grants and bonds.

Can I open a RDSP even if I have no money to invest in it?

Absolutely. It is possible that you are eligible to the Canada Disability Savings Bond if you have a low income. Those bonds will be paid into your RDSP.

What is the difference between a RESP and a RDSP?

The Registered Disability Savings Plan (RDSP) is a long term plan to help disabled persons and their close ones to ensure their financial security and save over the long term.

The Registered Education Savings Plan (RESP) is a medium term plan allowing to help pay post-secondary education costs.

In both cases, the plans allow to save and invest sheltered from taxes payable with the help of the government.

What are the benefits to open an RDSP between the age of 50 and 59?

When the disabled person turns 50, he/she can not receive grants or bonds anymore. However, we remind you that the RDSP is a way to save sheltered from cuts to benefits received from social programs. Therefore, opening a RDSP account is a good way to inherit before the age of 60 for a disabled person.

Can I receive tax credits or benefits for past grants?

Laws allow to go back 10 years to recover money you are entitled to and you did not receive. It’s time to wake up all this money which has been dormant and is yours!

Will my social solidarity or old-age pension benefits be reduced if I choose to invest in a RDSP?

No. When the time comes to withdraw, the Finandicap team will help you put the right solutions in place so as not to affect your benefits.

Will I be taxed upon withdrawal?

The money you and your close ones contribute into the RDSP is not taxable when withdrawn. However, the investment income, the grants and the bonds are taxable in the event of a withdrawal.

Nevertheless, in most cases, tax credits of the disabled beneficiary will considerably reduce taxes payable upon withdrawal.​

How do I reduce the impact of penalties of the RDSP

A new way to avoid penalties, in the event of the passing of one of the parents, would be to subscribe to a life insurance complementing the RDSP. We can help you with this.

Can I withdraw money before my 60th birthday?

To avoid penalties for early withdrawals, we have to wait 10 years after the payment of the last grant. In most cases, when a person opens a RDSP to the benefit of a disabled person under 30 years old, it is highly probable that it will be possible to withdraw money before the age of 60, without penalty.

Moreover, for those who wish to withdraw without waiting the 10 years period, a new disposition allows for small withdrawals for those who accept a reduced penalty. However, the penalty can represent up to 300% of the amount withdrawn.

How is family income calculated for grants purposes?

When the beneficiary is minor, the income from the two parents is taken into account. For single-parent families, the revenue of the parent with custody is considered.

From the year when the beneficiary turns 19 years old, the parents’ revenue will not count. For the grant calculations, the government only considers the beneficiary’s revenue and from his or her spouse, if applicable.

Is it possible to leave an estate in a RDSP account?

The RDSP is an economical and efficient way to pass an estate:

  • Amounts held in a RDSP do not have any effect on benefits received by low income persons;
  • The estate will save tax on the RRSP disposal, up to the contribution ceiling of the RDSP if those RRSPs are transferred directly as a legacy to the RDSP. The beneficiary must be the child or the grand-child of the legatee and financially dependent from him/her.

Those estate planning elements can be really advantageous and even essential if the disabled heir benefits from social solidarity.

Who can contribute to the RDSP?

Anyone can contribute to the RDSP account with the permission of the plan owner. It’s important to remember that there is no tax advantage for the contributor. The advantage is instead in the grant that will be paid to the benefit of the disabled person.

How to open a RDSP account?

With a Finandicap advisor, you will discover many options available to you!

We work in concert with financial institutions to accompany the disabled persons and their close ones in opening and managing the RDSP.

To discuss it, you can contact us

Am I eligible/Is my child eligible to RDSP?

To be eligible, the following criteria must be met:

• Beneficiary must be a Canadian resident aged 60 and under and be eligible for the Federal disability tax credit;

• Beneficiary must be aged 49 or under;

• Beneficiary must have a valid social insurance number.

Is it possible to transfer my RDSP with Finandicap if I opened it somewhere else?

Yes. Several persons that already had a RDSP with another financial institution chose to trust a Finandicap advisor to benefit from the tailored advice from our team. The transfer is simple and at no cost.

To discuss it, contact us.

What is a Canada Disability Savings Bond (CDSB)?

The Canada Disability Savings Bond (CDSB) helps low and middle-income families of disabled individuals aged 49 and under.

Contrary to the Canada Disability Savings Grant (CDSG), the right to receive this amount is not based on the annual contribution made into the RDSP, but rather on the family’s annual net income. Through the Canada Disability Savings Bond (CDSB), the federal government pays an annual $1,000 bond into the RDSP, that can reach a lifetime maximum of $20,000!

An income tax return must be filed each year to be eligible to a CDSB. Of course, one must have an RDSP account open to become eligible.

Why choose Finandicap ?

Finandicap is the RDSP specialist in the province of Quebec. Our team is dedicated to the disabled people and understands the challenges you face regardless of your disability.

With fees comparable to those charged by the other firms to manage your RDSP, you will have access to professional advisors that understand the particularities you live and to a team aware of most of the measures to help disabled individuals.

We are recognized by our financial products suppliers such as Bank of Montreal and Mackenzie Investments, as well as by the organizations that help disabled people.

Partager l'information dans vos réseaux