What are the main criteria to open an RDSP?

  1. Eligibility for the Disability Tax Credit (DTC):
    • The individual must be eligible for the Disability Tax Credit (DTC). This means they have a severe and prolonged impairment in physical or mental functions, which must be certified by a medical practitioner. CSR Wealth can help attain the DTC.
  2. Canadian Residency:
    • The beneficiary (person for whom the RDSP is being opened) must be a resident of Canada at the time the plan is opened.
  3. Age:
    • The beneficiary must be under the age of 60 when the RDSP is opened.
    • Government grants and bonds (Canada Disability Savings Grant and Bond) are only available until the beneficiary turns 49.
  4. Social Insurance Number (SIN):
    • The beneficiary must have a valid Social Insurance Number (SIN), and the individual opening the RDSP (if different) must also have a SIN.
  5. Financial Institution:
    • The RDSP must be opened at a financial institution that offers RDSP accounts, such as banks or investment firms.

Once these criteria are met, contributions can be made to the RDSP to save for the long-term financial security of the individual with a disability, and government matching contributions (grants) and income-tested bonds may also be received.