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– thestar.com
How do you take RDSP withdrawals?
– moneysense.ca
Registered disability savings plans (RDSPs) were created in the 2007 federal budget, and the first accounts were opened in December 2008. It took a while for financial institutions to offer them and, even now, you cannot open RDSPs everywhere.
Most Canadians with RDSPs have only ever deposited money. This is a primer on withdrawing from these specialized accounts.
Opening an RDSP
If you qualify for the disability tax credit (DTC), you can open an RDSP. The disability tax credit is a non-refundable tax credit for Canadians who have a qualifying physical or mental impairment.
You apply to the Canada Revenue Agency (CRA) for approval, and beyond the annual tax savings potential, the DTC is the gateway to opening an RDSP.
Government grants and bonds
RDSP contributions attract government grants and bonds that vary depending on the beneficiary’s adjusted family net income.
For income below $114,750 for 2025, the grants are:
$3 for every $1 contributed on the first $500 contribution (so, up to $1,500 a year of grants)
$2 for every $1 contributed on the next $1,000 (so, up to $2,000 a year of additional grants)
For higher income families, there is a dollar for dollar grant on the first $1,000, maxing out at $1,000 of grants…
