The Registered Disability Savings Plan (RDSP) is a long-term savings plan designed to help parents and others save for the financial security of a person who is eligible for the Disability Tax Credit (DTC). Contributions to an RDSP are not tax-deductible, but income earned within the plan grows tax-free. The federal government may also contribute through Canada Disability Savings Grants and Bonds, depending on the beneficiary’s family income.

An RDSP is a powerful tool for building financial security over time, especially when combined with government contributions that can total up to $90,000. It’s ideal for families planning long-term care or support, with flexible withdrawal options once the plan matures. Opening an RDSP can help ensure financial independence for a loved one with a disability, backed by generous government incentives.