How do you transfer an RDSP?
To move an RDSP to a new financial institution, open the new plan first and have the two institutions transfer it directly. Never withdraw the money yourself to move it. During the 10 year holdback period, a withdrawal can force $3 of grants and bonds to be repaid for every $1 taken out.
"How do I transfer an RDSP?" sounds like one question. It is actually three, and mixing them up is where families get hurt. There is moving a plan to a new institution, rolling an RESP into the plan, and rolling a parent's retirement savings in after a death. Each has its own rules. Let us separate them, because the how matters as much as the where.
Transfer one: moving your RDSP to a new institution
You are not locked into the institution where the RDSP was opened. If the service is poor, the fees are unclear, or your family's other planning lives somewhere else, the plan can move. The safe route is a direct transfer between institutions, and the usual order goes like this.
Step one: open the new RDSP at the institution you are moving to, for the same beneficiary. The new plan must exist before anything can move into it.
Step two: sign the transfer paperwork with the new institution. They pull the plan across from the old institution directly. The money never passes through your hands, and that is the whole point.
Step three: confirm the transfer landed, and confirm the plan's grant and bond history came with it. Then carry on contributing as usual, guided by your statement of entitlement.
Ask the outgoing institution about any transfer fees before you start, so there are no surprises. Institutions handle the fees differently, and knowing upfront is simply good housekeeping.
The mistake to avoid: withdrawing to move
Here is the expensive misunderstanding. Some families withdraw the money from the old RDSP, planning to deposit it into a new one. On paper it looks like a move. In the rules, it is a withdrawal, and withdrawals during the holdback period come with a cost: $3 of grants and bonds are repaid for every $1 withdrawn, up to the assistance holdback amount. A $1,000 withdrawal could mean $3,000 in government money going back. The contribution room does not simply come back either.
A direct transfer is not a withdrawal. That single distinction protects grants and bonds that took years to build. My guide to RDSP withdrawals and the 10 year rule explains the holdback math in full, and it is worth reading before any money moves anywhere.
Transfer two: rolling an RESP into the RDSP
The second transfer answers a different worry: the RESP that will not be used for school. Under certain conditions, money from an RESP can be transferred into the beneficiary's RDSP. The plans need to share the same beneficiary, the transfer uses up RDSP contribution room inside the $200,000 lifetime limit, and the transferred amount does not attract new RDSP grants. The conditions matter, so this is a move to make with professional guidance, not on a guess. Here is how running an RDSP and an RESP together works.
Transfer three: a parent's or grandparent's RRSP rolling in
The third transfer is the one most families have never heard of. In certain circumstances, when a parent or grandparent passes away, money from their RRSP or RRIF, or certain pension amounts, may be transferred on a tax deferred basis into the RDSP of a child or grandchild who was financially dependent on them because of an impairment. The amount is tied to the beneficiary's available RDSP contribution room, and the $200,000 lifetime limit still applies. Eligibility and timing rules matter here and can change, so this belongs in an estate conversation with proper legal and tax guidance. For the right family, it directs retirement savings toward long term support for their child. Aging parents planning ahead covers how this fits an estate plan.
What an RDSP transfer cannot do
One boundary to keep clear: an RDSP belongs to one beneficiary for life. Transfers move the plan, or move money into it. They cannot move the plan to a different person, and grants and bonds cannot be shifted to someone else's RDSP. The plan's history, its contribution room, its holdback clock, and its government money all stay attached to the same beneficiary through every transfer.
Handled directly, a transfer is boring, and boring is good. The plan arrives whole, the grants stay put, and the long term plan carries on exactly where it left off.
Common questions
Can I move my RDSP to a different bank?
Yes. Open the new RDSP at the institution you are moving to, then have the plan transferred directly between the institutions. A direct transfer keeps the plan, its contribution history, and its grants and bonds intact.
Why not just withdraw the money and deposit it in the new plan?
Because a withdrawal is not a transfer. During the 10 year holdback period, taking money out can force $3 of grants and bonds to be repaid for every $1 withdrawn, and the contribution room does not simply come back. The direct transfer route avoids all of that.
Can an RESP be transferred into an RDSP?
Yes, under certain conditions. The plans need to share the same beneficiary, the transfer uses up RDSP contribution room inside the $200,000 lifetime limit, and the transferred amount does not attract new RDSP grants. Professional guidance is worthwhile before making this move.
Can a parent's RRSP move into a child's RDSP?
In certain circumstances, yes. When a parent or grandparent dies, money from their RRSP or RRIF, or certain pension amounts, may roll over on a tax deferred basis into the RDSP of a child or grandchild who was financially dependent on them because of an impairment, within the available room.
See how this fits the bigger plan in the Disability Finance guide.
Sources: Disability Tax Credit, Canada Revenue Agency ยท Registered Disability Savings Plan, Government of Canada.
See where you stand: the free RDSP readiness checker takes about a minute and shows whether an RDSP belongs in your plan and what the government could add. No signup, and no pressure.
A quick note: this post is educational, not financial advice. For guidance on your own situation, book a free conversation. You don't have to figure this out alone. I'm here to help you through every step.