The RDSP, explained

A Registered Disability Savings Plan is a long-term savings plan for someone approved for the Disability Tax Credit. The government adds money in two ways: a grant that matches what goes in, up to three times over, and a bond for lower incomes that needs no contribution at all. This page explains both, the limits, the rules that catch people out, and how to open a plan.

• $3,500

  Grant a year at most

  On a $1,500 contribution, family income $117,045 or less

• $1,000

  Bond a year at most

  No contribution needed, family income $38,237 or less

• $70,000

  Lifetime grant limit

  Plus $20,000 in bonds and $200,000 in contributions

• 49

  Last year of grants and bonds

  Paid until December 31 of that year; the plan must open before 60

The grant: matching what you put in

$500 × 3

the first $500 earns $1,500

+

$1,000 × 2

the next $1,000 earns $2,000

$3,500 of grant on $1,500, when family income is $117,045 or less

Canada.ca’s example: family income $60,000 and a $1,200 contribution earns $2,900: $1,500 on the first $500 and $1,400 on the next $700.

The match depends on family income. Until the end of the year the beneficiary turns 18, that means the parents’ or guardians’ combined income; from the year they turn 19, the beneficiary’s own income plus a spouse’s. The 2026 thresholds use income from the 2024 tax return.

The bond: money for lower incomes

The bond is paid on income alone. Family income of $38,237 or less in 2026 gets the full $1,000 a year; between $38,237 and $58,523 it falls in a straight line; above $58,523 there is none. Opening the plan is enough; no contribution is needed. Over a lifetime the bond can add up to $20,000.

Item	Bar	Per year
$38,237 or less		$4,500
$48,380 (midway)		$4,000
$58,523 to $117,045		$3,500
Over $117,045		$1,000

See what the government would add for your income, contribution and age.

The limits, and the rules that bite

• Contributions stop at $200,000 over a lifetime. Grants stop at $70,000, bonds at $20,000.
• Grants and bonds are paid until December 31 of the year the beneficiary turns 49. The plan has to be opened before the end of the year they turn 59.
• The ten-year rule. Money taken out within ten years of the last grant or bond triggers repayment: for every $1 withdrawn, up to $3 of the grants and bonds paid in the previous ten years go back to the government. Treat the plan as locked until then.
• Carry-forward. Unused grant and bond entitlements from the past ten years (back to 2008) can be caught up: up to $10,500 of grant in a year, and up to $11,000 of bond when the plan is opened.
• Investment growth inside the plan is tax-free until withdrawn; then the grants, bonds and growth are taxed as the beneficiary’s income, and the contributions are not.

How to open one

1. Get the Disability Tax Credit

   The beneficiary must be approved, have a Social Insurance Number and live in Canada. The Disability Tax Credit, explained.

2. File tax returns

   The grant and bond are based on income from two years earlier, so returns have to exist, even with no income.

3. Pick a financial institution that offers RDSPs

   Most big banks and credit unions do; not every branch knows the product. Plan Institute keeps a list.

4. Open the plan, and name the holder

   An adult beneficiary usually holds their own plan; a parent or guardian holds it for a child.

5. Contribute what earns the most grant, by December 31

   $1,500 a year gets the full $3,500 when income is $117,045 or less. The bond needs nothing.

6. Check the Statement of Entitlement

   Your institution shows unused grant and bond room from the past ten years, which can be carried forward.

For free, detailed help, Plan Institute’s RDSP site explains opening a plan step by step and runs a helpline.

Questions people ask

How much does the government put in an RDSP?

Up to $3,500 a year in grant and $1,000 a year in bond, depending on family income and contributions. Lifetime limits are $70,000 in grants and $20,000 in bonds.

Do I have to contribute to get the bond?

No. The bond is paid on income alone, up to $1,000 a year for family income of $38,237 or less in 2026. Opening the plan is enough.

What is the best amount to contribute?

$1,500 a year when family income is $117,045 or less: the first $500 earns $1,500 and the next $1,000 earns $2,000, so $1,500 brings the full $3,500. Above that income, $1,000 brings the full $1,000 match.

Whose income counts?

Until the end of the year the beneficiary turns 18, the parents’ or guardians’ combined income. From the year they turn 19, the beneficiary’s own income plus a spouse’s. 2026 uses the 2024 tax return.

Until what age are grants paid?

Until December 31 of the year the beneficiary turns 49. The plan itself must be opened before the end of the year they turn 59.

What happens if I take money out early?

Withdrawals within ten years of the last grant or bond trigger repayment of up to $3 of government money for every $1 taken out. Plan to leave the money in for at least ten years after the last grant or bond.

Sources

Checked against these on September 28, 2026. Amounts change every January or July; we recheck them each year.

• Canada.ca: How much you could get in grants and bonds (modified July 10, 2026) for the 2026 thresholds and matching rates
• Canada.ca: Registered Disability Savings Plan for who can open one and the age limits
• Canada Disability Savings Act, s. 7 for the bond formula
• CRA: RDSP, withdrawals and the assistance holdback amount for the ten-year rule and taxation of withdrawals
• Plan Institute: rdsp.com free step-by-step help and the list of institutions

Free tools