RDSP Guide: Grants, Bonds and the 10-Year Rule
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The RDSP (Registered Disability Savings Plan) is one of the most generous savings plans in Canada, and it is reserved for people with a disability. For every dollar you put in, the federal government can add up to $3 in grants, plus up to $1,000 a year in bonds with no contribution at all. Over a lifetime, that adds up to $70,000 in grants and $20,000 in bonds, as of October 20, 2026. This guide is part of our investing hub.
Below, you will find who qualifies, how much the government pays at each income level in 2026, the 10-year rule that catches many families off guard, and where to open a plan.
Who can open an RDSP
The person who benefits from the plan is the beneficiary. According to the Canada Revenue Agency, the beneficiary must meet four conditions when the plan is opened:
- Disability tax credit: be approved for the disability tax credit (DTC).
- Social insurance number: have a valid SIN.
- Residency: be a resident of Canada.
- Age: be under 60, which means a plan can be opened until the end of the year the beneficiary turns 59.
The DTC is the gateway. Without DTC approval, there is no RDSP, no grant, and no bond. If you have not applied yet, our step-by-step guide on how to apply for the disability tax credit and our walkthrough of the disability tax credit form (T2201) are the place to start.
Who manages the plan
The person who opens and manages the RDSP is the holder. For a minor, the holder is a legal parent, a guardian or tutor, or a public body legally authorized to act for the child. An adult who is contractually competent can open a plan for themselves.
When an adult's capacity to enter a contract is in doubt, a qualifying family member, such as a parent, spouse, or common-law partner, can open the plan under a temporary federal measure. The CRA states that this measure ends on December 31, 2026.
How the RDSP works
Anyone can contribute to an RDSP with the holder's written permission: parents, grandparents, friends, or the beneficiary. There is no annual contribution limit, but the lifetime limit per beneficiary is $200,000, and contributions are allowed until the end of the year the beneficiary turns 59.
Contributions are not tax-deductible. In return, the money grows tax-sheltered inside the plan, and the contributions themselves come out tax-free later. Only the grants, bonds, and investment growth are taxable when withdrawn, and they are taxed in the beneficiary's hands, often at a low rate.
What you can hold inside
An RDSP can hold savings deposits, GICs, mutual funds, ETFs, or stocks, depending on the issuer. Given the long horizon, many families invest part of the plan for growth. Use our compound interest calculator to see what decades of growth can do to a contribution of $1,500 a year.
The Canada Disability Savings Grant
The grant is a matching contribution from the federal government. Its rate depends on family net income, and the 2026 thresholds are based on the family income reported on the 2024 tax return, according to Employment and Social Development Canada.
For 2026, the income threshold is $117,045:
- Family income of $117,045 or less: $3 for every $1 on the first $500 contributed, then $2 for every $1 on the next $1,000.
- Family income above $117,045: $1 for every $1 on the first $1,000 contributed.
The grant tops out at $3,500 a year and $70,000 over the beneficiary's lifetime. It is paid until December 31 of the year the beneficiary turns 49.
What counts as family income
For a beneficiary aged 19 or older, family income is the beneficiary's net income plus that of their spouse or common-law partner. For a beneficiary under 19, it is the net income of the parents or legal guardians. This is why an adult with a low income often qualifies for the highest matching rates, whatever their parents earn.
The Canada Disability Savings Bond
The bond requires no contribution. The government deposits it into the plan of a beneficiary with a low or modest family income, as long as the plan exists and the tax returns are filed.
For 2026, the thresholds are:
- Family income of $38,237 or less: the full bond of $1,000.
- Family income between $38,237 and $58,523: a partial bond, reduced as income rises.
- Family income of $58,523 or more: no bond.
The bond tops out at $20,000 over the beneficiary's lifetime and, like the grant, is paid until the end of the year the beneficiary turns 49.
| Family net income | Contribution needed for the maximum grant | Maximum grant | Bond |
|---|---|---|---|
| $38,237 or less | $1,500 | $3,500 | $1,000, no contribution needed |
| $38,237 to $58,523 | $1,500 | $3,500 | Partial bond, reduced as income rises |
| $58,523 to $117,045 | $1,500 | $3,500 | No bond |
| Above $117,045 | $1,000 | $1,000 | No bond |
Catching up on 10 years
If the beneficiary was DTC-eligible in past years but had no RDSP, you can recover unused grant and bond entitlements for up to the previous 10 years. Bond catch-up needs no contribution; it only requires the tax returns for those years.
Grant catch-up depends on how much you contribute. The government will pay up to $10,500 in grants in a single year when you are catching up on carried-forward amounts. For a family that discovers the RDSP late, opening a plan quickly is worth a lot.
The 10-year repayment rule
The government money is not yours to keep right away. The issuer must hold back an "assistance holdback amount" equal to the grants and bonds paid into the plan over the preceding 10 years. Withdrawals trigger repayment of part of that amount.
Under the proportional repayment rule described by the CRA, each $1 withdrawn requires repaying $3 of grants or bonds received in the 10 previous years, up to the assistance holdback amount. All grants and bonds from the last 10 years must be repaid if:
- the plan is closed or stops being an RDSP;
- the beneficiary loses DTC approval before age 60 and the holder closes the plan or withdraws from it;
- the beneficiary dies.
Exception for a short life expectancy
A beneficiary with a life expectancy of five years or less can elect for a specified disability savings plan. They can then withdraw up to $10,000 a year in taxable amounts, plus a prorated share of contributions, without repaying the grants and bonds of the previous 10 years.
Withdrawals and taxes
Payments from an RDSP are called disability assistance payments (DAPs). Lifetime disability assistance payments (LDAPs) must begin by the end of the year the beneficiary turns 60 and are then paid at least once a year. A formula set by the CRA caps the yearly amount, based on the plan's value and the beneficiary's age.
Each payment has a non-taxable part, the contributions, and a taxable part: grants, bonds, rollovers, and growth. The taxable part is reported on a T4A slip in the beneficiary's name.
If DTC eligibility ends
Since 2021, a holder can keep the RDSP open when the beneficiary is no longer approved for the DTC. The plan stops receiving contributions, grants, and bonds, but the money already inside can stay invested.
Where to open an RDSP
You open an RDSP with a participating financial institution, called an issuer. You do not need an existing account there. In the list published by Employment and Social Development Canada (page updated July 10, 2026), issuers include:
- Bank of Montreal, Bank of Nova Scotia, CIBC, RBC Royal Bank, and TD Waterhouse Canada Inc.
- Desjardins, Central 1 Credit Union, Central 1 Trust Company, and Concentra Bank
- Natcan Trust Company, CI Investment Services Inc., IG Wealth Management Inc., and Mackenzie Financial Corporation
- ATB Securities Inc., Aviso Financial Inc., Empire Life Insurance Company, Fonds FMOQ, and Leede Jones Gable Inc.
Ask each issuer about fees, minimums, and the investments it allows inside the plan. Then apply for the grant and bond when you open the plan, and file the tax returns that set the family income.
Conclusion
The RDSP turns modest contributions into large balances because the government adds up to $3 for every $1, plus up to $1,000 a year in bonds for low-income families. As of October 20, 2026, the lifetime caps are $70,000 in grants, $20,000 in bonds, and $200,000 in contributions.
The key steps are simple: get DTC approval, open a plan before the year the beneficiary turns 60, file tax returns every year, and plan withdrawals around the 10-year rule. If the beneficiary qualified in past years, catch up on up to 10 years of grants and bonds without delay.
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Frequently asked questions about the RDSP
Who is eligible for an RDSP?
A person who is approved for the disability tax credit, has a valid social insurance number, lives in Canada, and is under 60 can be an RDSP beneficiary. The plan can be opened until the end of the year the beneficiary turns 59. DTC approval comes first; our guide on how to apply for the disability tax credit explains the process.
How much does the government put in an RDSP?
In 2026, a family with a net income of $117,045 or less receives up to $3,500 a year in grants on $1,500 of contributions. A family with a net income of $38,237 or less also receives a $1,000 bond, without contributing. The lifetime caps are $70,000 in grants and $20,000 in bonds. See our investing hub for other registered plans.
What is the RDSP 10-year rule?
Grants and bonds paid into the plan in the previous 10 years must be repaid, in whole or in part, if you withdraw money, close the plan, or the beneficiary dies. Each $1 withdrawn triggers a repayment of $3 of those amounts, up to the assistance holdback amount. To avoid any repayment, a withdrawal has to come at least 10 years after the last grant or bond.
Can I contribute to an RDSP if I am not the parent?
Yes. Anyone can contribute with the written permission of the plan holder: grandparents, other relatives, or friends. Each contribution counts toward the $200,000 lifetime limit and can attract the grant, depending on family income. The disability tax credit itself is a separate tax measure; our guide on the disability tax credit amount explains what it is worth.
Is the RDSP taxable?
Contributions are not deductible and come out tax-free. Grants, bonds, and investment growth are taxed in the beneficiary's hands when withdrawn, which often means little or no tax at a low income. The issuer reports the taxable part on a T4A slip. For other tax-sheltered options, read our TFSA guide.
What happens to an RDSP if the beneficiary loses the disability tax credit?
Since 2021, the holder can keep the plan open. No new contributions, grants, or bonds are allowed, but the savings can stay invested. If the holder closes the plan or withdraws money before the beneficiary turns 60, grants and bonds from the last 10 years must be repaid. Check the disability tax credit form guide before a renewal.
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