Registered Disability Savings Plan (RDSP): A Powerful Tool for Long-Term Financial Security in 2025
The Registered Disability Savings Plan (RDSP) is a unique, government-supported investment account designed to help Canadians with disabilities build long-term savings. With generous government grants and bonds, tax-sheltered investment growth, and flexible contributions, an RDSP can be a crucial part of a comprehensive financial plan.
What is an RDSP?
An RDSP is a tax-advantaged savings account that allows individuals with disabilities and their families to save for the future while benefiting from government support.
- Contributions are not tax-deductible, but investments grow tax-free until withdrawal
- Government grants and bonds provide significant financial support
- Withdrawals provide long-term financial assistance, often in retirement
- Lifetime Contribution Limit: $200,000 per beneficiary
Eligibility & Contribution Details
Who Can Open an RDSP
2025 Government Support Programs
Canada Disability Savings Grant (CDSG)
- 300% match on first $500 (income ≤ $115,000)
- 200% match on next $1,000 (income ≤ $115,000)
- 100% match on first $1,000 (income > $115,000)
- Maximum annual grant: $3,500
- Lifetime maximum: $70,000
Canada Disability Savings Bond (CDSB)
- Up to $1,000 per year (income ≤ $37,500)
- Partial bond (income $37,500-$57,500)
- No contributions required
- Lifetime maximum: $20,000
*Income thresholds are indexed to inflation annually. The 2025 thresholds shown are approximate based on current indexation trends.
Carry-Forward Provisions for 2025
CDSG Carry-Forward
- Unused grant room from previous 10 years
- Maximum annual claim: $10,500
- Grants paid based on contribution amount
- Strategic contributions can maximize benefits
CDSB Carry-Forward
- Automatic for eligible beneficiaries
- Maximum annual claim: $11,000
- No contributions required
- Based on income from previous years
Investment Options & Withdrawals
Investment Options
- Stocks & ETFs
- Mutual Funds
- Bonds & GICs
- Cash Savings
Withdrawal Considerations
- Lifetime Disability Assistance Payments (LDAPs)
- One-Time Disability Assistance Payments (DAPs)
- Must start by age 60
- Proportional repayment rule applies
2025 RDSP Changes and Considerations
- Grant and bond eligibility extends until age 49
- Income thresholds are indexed to inflation
- Proportional repayment rule: $3 of grants/bonds repaid for each $1 withdrawn
- Family income for 2025 is based on 2023 tax returns
- DTC-ineligibility election period can preserve your RDSP
Need Help with Your RDSP Strategy?
At Altiora Wealth Management, we help individuals and families in Fredericton, New Brunswick, and across Atlantic Canada navigate the RDSP, disability grants, and long-term financial planning. Our experts can help you maximize government benefits and create a personalized strategy for 2025 and beyond.
Schedule a Consultation