But even amongst Canadians accustomed to the RDSP, misunderstandings exist. For example, the survey found that 36% of individuals with potentially qualifying medical conditions and caregivers who hadn’t opened an account felt they didn’t come up with the money for to accomplish that. A 3rd also didn’t know concerning the free government RDSP grants and bonds.
In this text, we clear up the confusion surrounding these and other RDSP details, including five common myths about who might be an RDSP beneficiary, where to open an RDSP, and more.
RDSP Myth #1: RDSPs are only for teenagers
Just like with a TFSA or an RRSP, it’s a superb idea to contribute to an RDSP as early as possible so the cash has time to grow. A parent or legal guardian can open an RDSP for a minor. An adult can open an RDSP before the age of 60. A parent, spouse, domestic partner, adult sibling or legal guardian may open an account for adults who cannot accomplish that themselves. If you must contribute to a friend or member of the family’s RDSP, you will want written consent from the plan owner. The lifetime contribution limit for an RDSP is $200,000.
As Director of Registered Plans at Concentra Trust, Selena Gusikoski has skilled insight into government programs. She also has personal experience. When her brother Cody was 38, she helped him arrange his own RDSP – a move that significantly improved his financial situation.
“Although you can open an RDSP as an adult, you ideally want to open it as early as possible so that you can get as much grant and guarantee money as possible,” says Gusikoski. The federal government allows applicants to use for payments for earlier years for as much as 10 years (so long as they meet the DTC eligibility criteria for those years), so later applications are also helpful.
RDSP Myth #2: You must make RDSP contributions to qualify for presidency funding
Yes and no – it depends. RDSP beneficiaries could also be eligible for grants and bonds. Here’s the way to qualify for every:
- Canada Disability Savings Grants are doubled contributions from the Canadian government. The amounts are based on the beneficiary’s adjusted family net income and the quantity deposited into the account. For calendar 12 months 2025, the utmost RDSP grant amount is $3,500 per 12 months for people whose family income is $114,750 or less and $1,000 for people with family income greater than $114,750. The lifetime maximum matching grant amount is as much as $70,000.
- Canada Disability Savings Bonds can be found to low-income Canadians with disabilities who can receive as much as $1,000 per 12 months toward their RDSP, whether or not they contribute or not. The amount is determined by the adjusted family net income of the beneficiary. In 2025, families earning $37,487 or less will receive the total $1,000. Individuals with incomes of $57,357 or more will not be eligible, and families with incomes in between will receive a portion of the bond. Bonds have a lifetime limit of $20,000.
Important to know: You can “carry forward” as much as 10 years of unused funding and bond entitlements. (See RDSP matching rates for past years.)
When Gusikoski’s brother applied for his RDSP, he did just that. “As long as the beneficiary meets the DTC eligibility requirements for those years, they can claim these government contributions,” says Gusikoski. “You can do this before the year you turn 49. It could be a significant nest egg for your future.”
