RDSP More information

Eligibility
The RDSP beneficiary can be anyone who:

  • is eligible to receive the Disability Tax Credit.
  • is under 60 yrs old (if you are 59, you must apply before the end of the calendar year in which you turn 59),
  • is a Canadian resident, and has a valid Social Insurance Number (SIN).

To receive the Canada Disability Savings Grants and Bonds you must be 49 or under (if you are 49, you must apply before the end of the calendar year in which you turn 49).

Beneficiaries and Plan Holders

  • The beneficiary may have only one plan and each plan may have only one beneficiary.
  • Anyone can contribute to an RDSP with the written permission of the plan holder.
  • The plan holder does not have to be a resident of Canada.
  • The beneficiary must be a resident of Canada when the plan is opened and when each contribution is made to the plan.

Withdrawals

  • To access any Grants or Bonds from the government, beneficiaries must wait ten years after the last Grant and Bond is received. If a withdrawal is made before the ten year wait period is over, any Grant and Bond received within the last ten years of the withdrawal will have to be paid back. Some exceptions apply to beneficiaries with shortened life expectancies.
  • Withdrawals that would reduce the RDSP balance below the value of grants and bonds received in the past 10 years may be denied.
  • Withdrawals can only be made by the beneficiary.
  • Withdrawals must begin when the beneficiary reaches 60 years of age.
  • Contributions (except contributions from a parent/grandparent’s RRSP/RRIF rollover) are tax exempt but bonds, grants, investment income and capital gains are considered taxable income for the beneficiary when withdrawn.
  • No impact on other government tax and disability benefits for B.C. beneficiaries.

Investment Options within your RDSP
Investment Professionals at Vancity can help you build an RDSP that works to achieve your financial goals while building a future you can feel good about. Within your Vancity RDSP you can invest in the:

  • RDSP Jumpstart® High Interest Savings Account
  • 12 to 60 Months Non-redeemable Term Deposits
  • 3-year Escalating Term Deposit
  • 5-year Escalating Term Deposit
  • Other Investment Options

Support for our members with disabilities

  • Vancity has always cared about our members’ well being and we have a long history supporting our members with disabilities - from outreach, advocacy and education, to financial literacy and business coaching, to support, sponsorship, and financial advice.
  • Advice and Business Loans for Entrepreneurs with Disabilities (ABLED).
  • We make services more accessible with many Ways to Bank.
  • We help you manage finances and prepare for the future with Estate Planning Resources.
  • Vancity Community Foundation, Community Living British Columbia (CLBC), 2010 Legacies Now, as well as other funders, community organizations and business leaders are collaborating to find sustainable innovative solutions to combat the isolation, segregation and poverty of people with disabilities in our province. Read more about the Community Living Innovation Venture.

FAQs
Does an RDSP affect my other disability benefits?
RDSP assets and payments in British Columbia are exempt when determining eligibility for provincial disability benefits. Also, having an RDSP has no impact on many federal benefits such as the Canada Child Tax Benefit, the Working Income Tax Benefit, the Goods and Services Tax Credit, Harmonized Sales Tax Credit, Old Age Security or Employment Insurance.

Can I deduct RDSP contributions on my income tax?
Contributions are not tax deductible but are tax exempt when withdrawn except contributions from a parent/grandparent’s RRSP/RRIF rollover.

Is a contribution required in order to receive government benefits?
Eligible members can receive up to $1,000 annually through the Canada Disability Savings Bond without making a contribution. If you make a contribution then you may be eligible to receive a matching grant of up to 300% through the Canada Disability Savings Grant.

Can I receive annual payments from my RDSP?
Yes, annual payments or Lifetime Disability Assistance Payments (LDAPs), begin by the end of the year in which the beneficiary turns 60. These annual payments are based on the beneficiary’ age and the fair market value of the plan and will continue for the life of the beneficiary or until the funds are depleted and the plan is terminated.

Are RDSPs protected from creditors?
Unlike RRSPs there is no specific creditor protection for RDSPs.

RDSP benefits
Download our RDSP information brochure
B.C. Government RDSP guide

If you need more help with any of the following:

  • Eligibility assessment for the RDSP;
  • RDSP Qualification Filings;
  • Tax credit and benefits review; or
  • RDSP account opening support
  • the Equal Futures program can help.

    If you already have your Disability Tax Credit and want to set up your RDSP, talk to one of our Investment Professionals.

    Jumpstart® High Interest Savings Account is a registered trademark of Vancouver City Savings Credit Union.