If you live in Ontario and someone in your family has a disability, the Registered Disability Savings Plan is worth understanding properly. I am Sean Leduc, a financial professional based in Carleton Place, and I am licensed in Ontario. I spend much of my work helping Ontario families open RDSPs and claim the government money that comes with them. This page brings the federal rules and the Ontario rules together in one place, in plain English.
The federal rules in brief
The RDSP is a federal plan, and the same rules apply in every province. The Disability Tax Credit is the key. A person must be approved for the DTC before an RDSP can be opened for them.
The government adds money on top of what a family saves. The Canada Disability Savings Grant can add up to $3,500 a year and $70,000 over a lifetime. The Canada Disability Savings Bond can add up to $1,000 a year and $20,000 over a lifetime, and the bond does not require a contribution. Together, grants and bonds can reach $90,000 over a lifetime.
Timing matters with this plan. Contributions can be made until the end of the year the beneficiary turns 59. Grants and bonds are paid until the end of the year the beneficiary turns 49. My full guide covers the matching rates, the carry forward rules, and withdrawals in detail. Read the full RDSP guide.
The Ontario layer, and what ODSP means for your plan
Ontario adds one rule that matters enormously to families here. The RDSP is fully exempt under the Ontario Disability Support Program, known as ODSP.
That exemption works in two ways. The RDSP does not count as an asset, so money saved inside the plan does not count toward the ODSP asset limit. Payments out of an RDSP do not count as income either, so those payments do not reduce ODSP support.
For a family receiving provincial support, that means you can save inside an RDSP without risking the benefit the family depends on. The savings can grow for the future while the support your family relies on today stays in place. Read the deep guide to the RDSP and ODSP together.
One related payment is worth knowing about. The Canada Disability Benefit is a separate federal payment for working-age adults who have the Disability Tax Credit. It sits apart from the RDSP and apart from ODSP. Read how the Canada Disability Benefit works.
How to open an RDSP in Ontario, step by step
The process is the same across Ontario, and it helps to take the steps in order.
Step 1. Confirm the Disability Tax Credit. The DTC approval comes first, because the RDSP opens after it. Check the Disability Tax Credit.
Step 2. Check RDSP eligibility. A few quick questions will show whether the plan fits and what government money may be available. Am I eligible for an RDSP?
Step 3. Choose where to open the plan. Bring identification and the beneficiary's Social Insurance Number with you when you open it.
Step 4. Open the plan and make a first contribution. That first contribution is what allows grants to start flowing into the plan.
Step 5. Keep tax returns filed every year. Grants and bonds depend on family income taken from the return filed two years earlier, so filing each year keeps the government money coming.
Ontario numbers run on federal rules
Families often search for an Ontario RDSP calculator, and the answer is simpler than it looks. The grant and bond rules are federal, so Ontario families use the same calculator as everyone else in Canada. The matching rates, the yearly amounts, and the lifetime limits do not change at the provincial border.
Run your own numbers with the RDSP calculator on this site. You can try different contribution amounts and see how the grant responds.
Getting help in Ontario
You do not need to work through this on your own. If you would like to talk it through with someone who does this work every day, you can talk to an RDSP advisor in Ontario. I work with families across Ontario by phone and video.
The checkers on this site are a good first step before we talk. The DTC checker and the RDSP checker above take only a few minutes each, and they show you where your family stands. Community organizations across Ontario also hold disability savings information sessions for families, and those sessions can be a helpful place to hear the basics and ask questions in person.
Supporting reading
Two guides on this site go deeper on the Ontario side of disability savings. The RDSP and ODSP guide walks through how the two programs sit together, rule by rule. The guide to disability benefits in Ontario sets out the wider picture of support available to Ontario families.
RDSP in Ontario, common questions
Does an RDSP affect ODSP?
No. The RDSP is fully exempt under ODSP. It does not count as an asset toward the ODSP asset limit, and payments from an RDSP do not count as income, so they do not reduce ODSP support.
How do I open an RDSP in Ontario?
Start by confirming the Disability Tax Credit. Next, check RDSP eligibility. Then choose where to open the plan and bring identification and the beneficiary's Social Insurance Number. Once the plan is open, make a first contribution so grants can start, and keep tax returns filed every year.
Is the RDSP exempt under ODSP?
Yes. The RDSP is fully exempt under ODSP. The plan does not count toward the ODSP asset limit, and payments from the plan do not count as income, so they do not reduce ODSP.
Who is eligible for an RDSP in Ontario?
A Canadian resident with a Social Insurance Number who is approved for the Disability Tax Credit and is under 60 can be the beneficiary of an RDSP. Contributions can be made until the end of the year the beneficiary turns 59, and grants and bonds are available until the end of the year they turn 49.
Book a conversation
If you would like help opening an RDSP in Ontario, or you want a second look at a plan your family already has, book a conversation with me. We will go through your situation in plain English, at your pace. You don't have to figure this out alone. I'm here to help you through every step.