RDSP Eligibility and Contribution Rules

The Registered Disability Savings Plan (RDSP) is a unique savings tool designed to help individuals with disabilities build long-term financial security. However, the rules around who can open an RDSP, who can contribute, and how contributions are managed are specific and important to understand.

Knowing these eligibility and contribution rules ensures you take full advantage of the RDSP’s benefits while avoiding common mistakes.

Who Is Eligible to Be a Beneficiary of an RDSP?

To qualify as a beneficiary (the person whose name the RDSP is registered under), an individual must meet all of the following criteria:

Be a Canadian resident.
Have a valid Social Insurance Number (SIN).
Be under the age of 60 at the time the plan is opened.
Be eligible for the Disability Tax Credit (DTC).

The connection to the DTC is critical—without it, the RDSP cannot be opened or maintained. Optimize assists in confirming eligibility and managing DTC status as part of your planning.

Who Can Open an RDSP?

An RDSP can be opened by:

The beneficiary themselves, if they have reached the age of majority and are legally able to manage their financial affairs.
A legal parent, guardian, tutor, or legal representative on behalf of the beneficiary.
Another authorized person or agency, depending on provincial and territorial regulations.

At Optimize, we guide families in determining who should be the plan holder, especially when dealing with minors or adults requiring support.

Who Can Contribute to an RDSP?

Anyone can contribute to an RDSP with the written permission of the plan holder:

Family members, friends, or even community organizations may contribute.
There is no requirement for contributors to be related to the beneficiary.
Contributions are pooled toward the lifetime limit for the beneficiary.

This flexibility allows for collaborative support, encouraging family and community involvement in building long-term financial security.

RDSP Contribution Limits and Rules

While contributions are flexible, certain limits apply:

Rule or Limit	Details
Lifetime contribution limit	$200,000 per beneficiary
Annual contribution limit	None — large contributions allowed in a single year
Contribution deadline	End of the year the beneficiary turns 59
Tax deductibility	Contributions are not tax-deductible
Government grants/bonds	Calculated separately and do not reduce personal contribution room

Government grants and bonds are calculated separately and do not reduce personal contribution room. However, maximizing these incentives often informs contribution strategies.

Carry-Forward of Unused Contribution Room and Grant Eligibility

If no contributions are made in certain years, unused grant eligibility and contribution room can carry forward for up to 10 years. This allows families to catch up on missed opportunities, though there are annual limits on how much grant can be received in a single year.

Note: Strategic catch-up contributions can significantly accelerate RDSP growth, especially when aligned with grant maximization strategies.

How Optimize Helps You Navigate RDSP Eligibility and Contribution Rules

At Optimize, we ensure your RDSP is set up and funded strategically to maximize long-term benefits. We help you:

Confirm beneficiary eligibility and manage DTC status.
Determine the appropriate plan holder, based on family and legal considerations.
Develop contribution strategies that align with your financial capacity and goals.
Track lifetime contribution room and grant eligibility, avoiding over-contributions.
Coordinate RDSP contributions with other savings and support programs, ensuring a cohesive plan.

With Optimize’s support, RDSP contributions become a structured, efficient way to build lasting financial support for individuals with disabilities.