A registered disability savings plan (RDSP) can be used to help qualifying Canadians with disabilities and their families provide long-term financial protection for the disabled individual.
An RDSP accepts government assistance in the form of bonds up to $20,000 and grants up to $70,000. With no annual contribution limit, your savings continue to grow tax-deferred. Contributions are not tax-deductible and can be made up until the end of the year the beneficiary turns 59.
RDSP contributions may qualify for the Canada Disability Savings Grant which offers matching contributions of up to $3,500 per year until the end of the year the beneficiary turns 49.
Low income families may qualify for the Canada Disability Savings Bond which provides up to $1,000 each year, regardless of whether contributions have been made or not, up until the end of the year the beneficiary turns 49.