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Registered Disability Savings Plan (RDSP)

CRATax and accessibilityMixed tax treatment on withdrawals

Many veterans tell us they felt overwhelmed at first.

In one sentence
A Registered Disability Savings Plan (RDSP) is a long-term savings plan for a person approved for the Disability Tax Credit.
Who this is usually for
You may wish to explore this program if the following appear relevant: The beneficiary must generally be -approved, have a valid SIN and be resident in Canada when the plan is opened.
What it may help with
  • Long-term tax-deferred investment growth.
  • Government matching grants, potentially up to annual and lifetime limits.
  • Government bonds for eligible low- and modest-income beneficiaries without requiring contributions.
2 min read·Preparation time varies by situationScroll to explore, or reach out if you are unsure
1

What is this?

A Registered Disability Savings Plan (RDSP) is a long-term savings plan for a person approved for the Disability Tax Credit. Private contributions are not tax-deductible, but investment growth is sheltered while inside the plan. Depending on age and family income, the plan may receive Canada Disability Savings Grants and Bonds. Withdrawals can trigger repayment of recent grants and bonds under the assistance holdback rules, so the RDSP should be treated as long-term planning rather than an ordinary savings account.

Refer investment and estate questions to qualified professionals.

2

Why someone might look at this benefit

You or a family member has DTC approval.

You want to access government grants or bonds.

You were approved for DTC retroactively and may have carry-forward room.

You need to understand who can open or control the plan.

You are considering a withdrawal and need to understand repayment consequences.

3

Who might qualify?

You may wish to explore this program if the following appear relevant: The beneficiary must generally be -approved, have a valid SIN and be resident in Canada when the plan is opened. A plan must be opened by an eligible holder through a participating financial institution. Grants and bonds are generally available only through the end of the year the beneficiary turns 49. Family income determines matching rates and bond entitlement. Only Employment and Social Development Canada / Canada Revenue Agency / participating financial institutions or the legally responsible decision-maker can determine eligibility.

Only the responsible organization can determine eligibility.

4

What this benefit may help with

Long-term tax-deferred investment growth.
Government matching grants, potentially up to annual and lifetime limits.
Government bonds for eligible low- and modest-income beneficiaries without requiring contributions.
Carry-forward of unused grant and bond entitlements for prior eligible years, subject to rules.

Where this may fit in your transition

Stage 7
See the full Veterans Transition Roadmap
7

Typical process

Open through a participating financial institution.

Confirm DTC approval, SIN and residency.
Compare participating financial institutions and plan fees/options.
Open the RDSP with the appropriate holder and beneficiary.
Apply for grants and bonds through the issuer.
Review annual entitlement statements before contributing.
Seek advice before withdrawals, transfers or closure.

If you receive a decision

Withdrawal and repayment rules can be complex.

  • • Entitlement — whether the condition is related to service
  • • Assessment — the severity or percentage rating
  • • Effective date — when the benefit starts
  • • Calculation — how the amount was determined
  • • Approved services — what is covered and for how long
  • • Frequency or dollar limit — caps on treatment or services
  • • Reasons for denial — the specific basis for the decision

Every situation is different. Timelines vary based on the organization, the complexity of the application, and the volume of requests being processed.

What usually happens next

1

Application received

The organization typically sends a confirmation that your application was received.

2

Information requests

They may ask for additional medical, service, or financial records to support your application.

3

Review

A decision maker reviews your application, the evidence provided, and the applicable program rules.

4

Decision

You receive a written decision explaining the outcome, the reasons, and any review rights.

5

If approved

Benefits begin according to the program rules and the effective date stated in the decision.

6

If not approved

The decision letter explains why and describes your review or appeal options, including any deadlines.

7

Reassessment

If your condition or circumstances change, you may request a reassessment of the decision.

8

Reviews and appeals

Depending on the issue, you may request a departmental review or a hearing before the Veterans Review and Appeal Board.

Every situation is different. Timelines vary and are not guaranteed.

Evidence that may help

DTC approval

SIN

income and plan documents.

Not every document is required for every application. This list is for general awareness only.

9

You may also want to explore

Disability Tax Credit

A related program that may be worth exploring.

Canada Disability Benefit

A related program that may be worth exploring.

Provincial disability assistance

A related program that may be worth exploring.

Estate planning

A related program that may be worth exploring.

Henson trust information where legally relevant

A related program that may be worth exploring.

10

Helpful VANCA tools

Claim Readiness ReportPossible Benefits ExplorerEvidence TrackerDescribe the ImpactSupport MapRequest Support
11

Official sources

CRA

The Canada Revenue Agency administers the tax-related aspects of this benefit. Their official page explains how to apply and what documentation is required.

View the official source

Program rules may change. The official department, tribunal, insurer, or benefit provider makes eligibility and payment decisions. VANCA provides information only — not decisions.

Before you apply

  • I understand what this benefit is.
  • I know what evidence I already have.
  • I understand who makes the decision.
  • I know my next step.
  • I know where to ask questions if I become stuck.

Not sure if this applies to you?

We don't determine eligibility, but we can help you understand your options, explain how programs may work together, and identify possible next steps.

Request Support

Last reviewed

2026-07-18

Next scheduled review

2026-10-15

Official source verified

2026-07-18

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