What is a Registered Disability Savings Plan (RDSP)?
The RDSP is a federal government program that is designed to provide tax-assisted savings for taxpayers who qualify for the disability amount. The contributions to RDSPs are not deductible and anyone can contribute to them, even the disabled beneficiary of the plan. Taxation of any income they earn is deferred until a withdrawal is made from the plan. Although there is a lifetime contribution limit of $200,000, there is no annual contribution limit. A contribution of $200,000 could therefore be made in the first year.
