Registered Disability Savings Plan (RDSP)

Setting up an RDSP doesn’t have to be complicated. At Hancock Financial Solutions, we are here to provide personalized, one-on-one support to guide you through the process, ensuring you maximize all available benefits.

Step 1: Call 1-866-634-0071 for a Free Consultation
Step 2: We Handle the Application for You
Step 3: Secure Your RDSP & Start Growing Your Savings

​Take the next step today—call us now or fill out our online form to get started!​​

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Understanding the Registered Disability Savings Plan

A Registered Disability Savings Plan (RDSP) is a government-supported savings program designed to help Canadians with disabilities and their families build long-term financial security.​

The RDSP allows eligible individuals to grow their savings tax-free, with the added benefit of government contributions in the form of grants and bonds. The Canadian government may contribute up to $90,000 over a lifetime, making it one of the most valuable financial tools for individuals with disabilities.

Why Open an RDSP?

• Government Contributions – Receive up to $3 for every $1 you contribute through the Canada Disability Savings Grant (CDSG).

• Automatic Contributions for Low-Income Individuals – Even without personal savings, eligible individuals may receive up to $1,000 per year through the Canada Disability Savings Bond (CDSB).

• Tax-Free Growth – Investments grow tax-free until withdrawal.

• Flexible Contributions – Parents, family members, and friends can contribute.​

Who Qualifies?

To open an RDSP, the beneficiary must:
✔ Be a Canadian resident
✔ Have a valid Social Insurance Number (SIN)
✔ Be under 60 years old
✔ Be eligible for the Disability Tax Credit (DTC)

How It Works

An RDSP is designed for long-term financial security by combining personal savings with government contributions.

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How Contributions and Grants Work

• Personal Contributions:

  • No annual limit, but a lifetime cap of $200,000.

  • Anyone—the beneficiary, parents, family members, or friends—can contribute.

• Canada Disability Savings Grant (CDSG):

  • The government matches up to $3 for every $1 contributed, depending on income.

  • A maximum of $3,500 per year, with a lifetime limit of $70,000.

• Canada Disability Savings Bond (CDSB):

  • For low-income individuals, up to $1,000 per year is added automatically.

  • The lifetime maximum is $20,000.

• Tax-Free Growth:

  • Investments grow tax-free until withdrawal.

  • RDSP funds do not affect most disability benefits.

Withdrawals

• Funds can be withdrawn anytime, but government contributions must remain in the account for at least 10 years to avoid repayment.

• Withdrawals are taxed as income for the beneficiary, but personal contributions can be withdrawn tax-free.

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Who Can Open and Manage an RDSP?

•  If the beneficiary is an adult (18+ and legally capable):

  • They can open and manage the RDSP.

  • Parents or legal guardians may also help.

• If the beneficiary is a minor (under 18):

  • A parent or legal guardian must open and manage the account.

• If the beneficiary is an adult but lacks legal capacity:

  • A parent, legal guardian, or appointed representative can open and manage the RDSP.

• If you don’t yet have DTC approval, apply through the Canada Revenue Agency (CRA) before proceeding.

How to Apply

Applying for an RDSP is a simple process that can be broken down into a few key steps.

Step 1: Confirm Eligibility

• Ensure the beneficiary meets the criteria and is approved for the Disability Tax Credit (DTC).

• If not yet approved, apply for the DTC through CRA first.

Step 2: Choose a Financial Partner

• Instead of dealing with banks, Hancock Financial Solutions offers personalized, one-on-one RDSP support.

• We guide you through the application and ensure you receive all available government grants and bonds.

Step 3: Open an RDSP Account

• Provide the beneficiary’s Social Insurance Number (SIN).

• Show proof of DTC approval.

• If applicable, a parent or guardian may need to sign as the account holder.

Step 4: Apply for Government Contributions

• Many providers apply for grants and bonds automatically, but we’ll ensure you maximize your benefits.

• We’ll also help you understand investment options to grow your RDSP effectively.

Step 5: Start Contributing & Managing Your RDSP

• Contributions are flexible—family and friends can add funds anytime.

• Your savings grow tax-free, ensuring long-term financial stability.

 

📞 Need help applying? Call Hancock Financial Solutions at 1-866-634-0071 for a free consultation or fill out the form below!

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Start an RDSP Today and Get Personalized Support for Your Loved One!