The little-used RDSP is a financial game changer for disabled Canadians — here’s what you need to know

The number of Canadians with at least one disability has doubled in the past 10 years, according to Statistics Canada, and with it, the number of investment and tax tools to help disabled Canadians plan for the future has grown.
One such generous tool is the registered disability savings plan (RDSP), an account that remains largely untapped.
Established in 2008, the RDSP helps Canadians approved to receive the disability tax credit (DTC) plan for their long-term financial security through bonds, grants and government-matched contributions.
Despite being around for years, experts say the account remains underused. StatsCan found that just under 32 per cent of eligible Canadians (up to age 59) had an RDSP in 2020.
One problem, says Caval Olson-Lepage, a certified financial planner at Innovation Wealth in Saskatoon, Sask., is that there’s just not enough awareness.
“We hear a lot about our RRSPs, TFSAs and RESPs, but RDSPs aren’t advertised as much.” 
Canada’s major financial institutions, including BMO, TD, CIBC, RBC and Scotiabank, all offer RDSPs. 
The federal government offers two types of incentives for RDSPs: The Canada Disability Savings Grant (CDSG) encourages RDSP contributions through grants as a percentage of contributions; the Canada Disability Savings Bond (CDSB) is based on family net income.
The CDSG is a matching grant, so for every dollar contributed or every gift deposited into an RDSP, up to a maximum of $3,500 a year, the amount is matched equally up to three times in government grants, says Selena Gusikoski, director of registered plans at Concentra Trust, an Equitable Bank company.
The matching amount for a CDSG varies based on your family’s net income. The maximum lifetime contribution limit is $70,000.
“With tax-deferred growth, along with government grants and bonds up to $90,000,” says Gusikoski, “an RDSP is extremely advantageous and has the potential to change your life or that of someone you love.” 
There’s a misconception that it’s an arduous process to open an RDSP, pointed out Gisukoski, whose brother, Cody, has an account.
“While we were aware of RDSPs, it was put off as a ‘later’ thing because it seemed complicated,” says Gisukoski, whose family only realized the significant compounding benefit and how straightforward the process was after helping Cody open an account.
And like other registered savings accounts, there are rules.
According to the Government of Canada website, beneficiaries whose RDSP has been terminated or their plan ceases to be an RDSP must repay any bonds or grants made in the preceding 10 years in full.
Regular withdrawals must begin by Dec. 31 of the year you turn 60. If you withdraw money before you are 60, you may need to pay back some of the grant and bond amounts.
Any grants, bonds, and interest earned on investments will be taxed when withdrawn, but your original investment will not be taxed. 
Other times, individuals might be under the impression that their situation or impairment is not severe enough to be eligible for the DTC, and therefore the RDSP, says Olson-Lepage.  
“There’s a significant number of people who don’t realize that type 1 diabetes qualifies you for the DTC,” says Olson-Lepage. “It’s worth investigating if you already qualify for the DTC … and if you’re unsure you should speak to a medical professional because the benefits of an RDSP outweigh any of the work you need to do to open the plan.”