Saving for the future is important—but for Canadians living with disabilities, planning ahead can come with extra challenges. That’s why the Registered Disability Savings Plan (RDSP) exists. This long-term, government-supported savings program is designed to help disabled individuals build financial security over time—with added bonuses like grants, bonds, and tax-free growth.
If you or someone you care for qualifies, the CRA RDSP 2025 could be a life-changing financial tool. Let’s break it down.
Overview
The RDSP is a federal savings plan available to Canadians living with disabilities. Managed by the Canada Revenue Agency (CRA), the plan allows eligible individuals to save for the long term with the support of government grants and bonds. The plan offers tax-free growth, and depending on income, participants can receive up to 300% in matching government contributions.
In 2025, additional benefits may be available in certain provinces, including Newfoundland and Labrador, which offers a $1,200 annual contribution to qualifying RDSP accounts.
Eligibility
To open and contribute to an RDSP in 2025, the CRA Disability Savings Plan Eligibility rules apply:
| Requirement | Details |
|---|---|
| Age | Must be under 60 when the plan is opened |
| Residency | Must be a resident of Canada at the time of opening |
| Social Insurance Number (SIN) | A valid SIN is required |
| Disability Tax Credit (DTC) | Must be approved for the DTC by the CRA |
Note: You can contribute to an RDSP until the end of the year in which the beneficiary turns 59.
Benefits
RDSPs offer a mix of government support and tax advantages that make them one of the most valuable tools for Canadians with disabilities.
1. Canada Disability Savings Grant (CDSG)
- Matching rate: Up to 300%
- Annual limit: Up to $3,500
- Lifetime limit: $70,000
- Matching is based on family income; lower-income households receive higher matching rates.
2. Canada Disability Savings Bond (CDSB)
- No contribution needed to qualify
- Annual amount: Up to $1,000
- Lifetime limit: $20,000
- Designed for low-income Canadians with disabilities.
3. Tax-Free Growth
- All investment income grows tax-free
- Withdrawals are partially taxed (only the government portion is taxed)
4. Flexible Withdrawals
- Funds can be used for any purpose that benefits the person with a disability
- Original contributions are not taxed when withdrawn
5. No Repayment Required
- Unlike some other savings programs, you don’t have to repay contributions if you withdraw early
- However, grants and bonds may be repayable if withdrawn within 10 years of receipt
6. Provincial Top-Ups
- In Newfoundland and Labrador: An additional $1,200 per year may be contributed by the province in 2025
Steps
Wondering how to open an RDSP? Follow these simple steps to get started:
Step 1
Make sure the beneficiary:
- Has been approved for the Disability Tax Credit
- Has a valid SIN
- Is a Canadian resident
- Is under 60 years old
Step 2
- The beneficiary can hold the plan if they are over 18
- Parents or legal guardians can open one for a minor
- A legal representative can also open one for someone who is unable to manage finances
Step 3
Choose a bank, credit union, or trust company that offers RDSPs. Most major Canadian banks offer them.
Step 4
Have the following ready:
- SIN of the beneficiary
- DTC certificate or CRA confirmation
- Proof of residency and date of birth
Step 5
Fill out the RDSP application at your chosen financial institution. They will walk you through the setup.
Step 6
- There’s no annual contribution limit, but the lifetime limit is $200,000
- Contributions are not tax-deductible
Step 7
Your financial institution will automatically apply for CDSG and CDSB on your behalf based on your eligibility.
Step 8
Once the RDSP is active:
- Choose investment options (GICs, mutual funds, etc.)
- Monitor growth and adjust based on your goals
- Plan for withdrawals when needed—especially after age 60
| Feature | Details |
|---|---|
| Plan Type | Registered Disability Savings Plan (RDSP) |
| Year Available | 2025 |
| Eligibility | Must qualify for DTC, under age 60, Canadian |
| Grant (CDSG) | Up to $3,500/year, $70,000 lifetime |
| Bond (CDSB) | Up to $1,000/year, $20,000 lifetime |
| Tax Treatment | Contributions grow tax-free |
| Withdrawal Tax | Government funds taxed; personal contributions tax-free |
| Lifetime Contribution Limit | $200,000 |
| Provincial Top-Up (NL) | $1,200/year (Newfoundland and Labrador only) |
If you or your loved one qualifies, opening an RDSP in 2025 could unlock tens of thousands of dollars in government support. It’s a powerful, underused savings tool—and the earlier you start, the more you’ll benefit.
FAQs
Who can open an RDSP in 2025?
Anyone approved for the DTC and under age 60 can open one.
How much can I get in government grants?
You can receive up to $3,500 per year and $70,000 lifetime.
Do I need to contribute to get a bond?
No. You can receive up to $1,000/year without contributing.
Is RDSP money taxed when withdrawn?
Only the grant and bond portions are taxed, not contributions.
What’s the 2025 RDSP top-up in Newfoundland?
Eligible residents may receive an extra $1,200 annually.
