Registered Disability Savings Plan
In 2026, the Qualifying Family Member (QFM) provision remains a valuable necessity for many families in Ontario. It allows a parent, spouse, common-law partner or adult sibling to open and manage a Registered Disability Savings Plan (RDSP) for a disabled adult whose may lack the mental capacity to enter into a legal contract. Without this … Read more
At first glance, the Registered Disability Savings Plan (RDSP) repayment rules can seem daunting. If a beneficiary needs to access their funds early, they could be on the hook to return a portion of the contributions made by the federal government. The Proportional Repayment rule and the Assistance Holdback Amount (AHA) These terms are used … Read more
Opening a Registered Disability Savings Plan (RDSP) account It is a common frustration for many disabled Canadians. After doing their due diligence to educate themselves of the benefits of the RDSP, they walk into their financial institution only to be met by inexperience and misinformation from staff who lack knowledge of how these accounts actually … Read more
Most Ontario Disability Support Program (ODSP) recipients know of the $40,000 asset limit for single persons (or $50,000 for a couple, with an extra $500 for each dependent child). But what if family or friends of an ODSP recipient want to help them financially? Is there a limit to how much they can receive? What … Read more
It is well understood that the Registered Disability Savings Plan (RDSP) is tax-deferred, meaning it is not taxed until withdrawn. So how are Lifetime Disability Assistance Payments (LDAPs) taxed? Are the taxes paid by the beneficiary or the account holder? Are they subject to withholding taxes the same way withdrawals from Registered Retirement Savings Plans … Read more
An interesting forum post from a user in their 50s asked which type of registered account they should invest in. Would it be better to open a Registered Retirement Savings Plan (RRSP) or a Registered Disability Savings Plan (RDSP)? The person qualified for the Disability Tax Credit (DTC) and was currently out of the workforce. … Read more
Understanding the timing and flexibility of RDSP payments is crucial, especially when compared to the more familiar RRSP or RRIF rules. While both are designed for long term financial security, the rules regarding withdrawing from an RDSP are different. LDAPs must begin by age 60 By December 31st of the year the beneficiary turns age … Read more
Turning age 60 is a milestone for any RDSP holder, as the 10 year proportional repayment rule ends, and Lifetime Disability Assistance Payments (LDAPs) must begin. However, if a beneficiary is also receiving provincial supports such as ODSP, does this result in the loss of benefits? Before age 65 – while still receiving provincial disability … Read more
For Canadians living with a disability, the Registered Disability Savings Plan (RDSP) is one of the most powerful and generous wealth building tools available. However, not every bank or credit union in Canada is equipped to open and administer these accounts. Because the RDSP requires complex reporting to the federal government to trigger grants and … Read more
The Registered Disability Savings Plan (RDSP) is well known for its strict 10 year repayment rule. For every $1 withdrawn from the account, $3 of government grants and bonds must be returned to the government, which is a costly penalty that discourages early withdrawals. But what happens if the beneficiary faces a terminal illness and … Read more