“We as a family used to get information about RDSP from different organizations, but we always put it in the fire,” said Gusikoski. “It was like, ‘Yeah, we’ll get to that.’
His family is not alone. More than 1.45 million Canadians are eligible to open an RDSP, but only about 36% had one by the end of 2022, according to the most recent data from Statistics Canada.
Just 17% of Canadians surveyed know about RDSPs, and many don’t understand how these registered accounts work, according to a recent study commissioned by Concentratera Trust, an Equitable Bank company that provides services to most of Canada’s credit unions. Gusikoski, director of enrolled programs at Concentratera Trust, recounts how he didn’t realize RDSP would be a good fit for Cody until he began exploring offering RDSP as part of the company’s work with credit unions. Once he did, the benefits were immediately apparent.
“That was a very good opportunity for me to continue the work from the beginning to the end,” said Gusikoski. “I quickly realized that the lack of information about the RDSP—including federal grants, its potential for growth and how it works—led to Canadians with disabilities missing out on a huge opportunity.”
What is RDSP?
Introduced by the Canadian government in 2008, the registered disability savings plan is a registered account designed to help eligible people with disabilities save for the long term. RDSPs are offered by various financial institutions, including credit unions.
To be an RDSP beneficiary, an individual must be eligible for the disability tax credit (DTC), have a social insurance number (SIN), be a Canadian citizen, and be under the age of 60. A beneficiary can have only one RDSP.
Like other registered accounts, the RDSP offers tax benefits: any growth in the account is tax-free until the funds are withdrawn. Grants, bonds and interest are taxable in the hands of the beneficiary, and personal donations are not taxed.
The RDSP consists of three segments: contributions, grants and bonds. Contributions are what you or your family make to the RDSP. Here’s how grants and bonds work:
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