What are RDSPs?

  • A Registered Disability Savings Plan (RDSP) is a federal tax-supported savings vehicle that is intended to encourage people to save for the future needs of a person with a disability.
  • Ontario is supporting RDSPs as a way to help families save for children and adults with disabilities, and to help people with disabilities plan for their future needs.
  • Savings through RDSPs may mean greater independence and a better quality of life for people with disabilities.

How do RDSPs affect eligibility for social assistance?

We have made several changes to social assistance to ensure that Ontarians with disabilities can benefit from the new RDSPs:

  • people with an RDSP can still be financially eligible for social assistance; and
  • people on social assistance can take money out of an RDSP without affecting their social assistance payments.

To further benefit Ontario Disability Support Program recipients, we increased the amount that they can receive as a gift or payment from a trust to $10,000 a year or any amount if used for:

  • approved disability related items, services, education or training expenses that are not reimbursable;
  • the purchase of a principal residence or an exempt vehicle;
  • first and last month’s rent necessary to secure accommodation; or
  • contributing to an RDSP or an RESP where a member of the benefit unit is the beneficiary.

Assistance for Children with Severe Disabilities:

For those receiving Assistance for Children with Severe Disabilities, the government has changed the rules so that they will be allowed to take out as much money as they need from an RDSP without it affecting their financial support.

How to qualify for RDSPs:

To establish an RDSP, a person must first qualify for the federal Disability Tax Credit (DTC). To qualify for the DTC, a person must have a "severe and prolonged mental or physical impairment".

For more information: Visit the Canada Revenue Agency's website.

Or call the Canada Revenue Agency's general enquiry line: 1-800-959-8281 to speak with an agent; TTY service 1-800-665-0354.