Withdraw Savings from a Registered Disability Savings Plan
Whenever money is withdrawn from an RDSP, all grants and bonds paid into the RDSP during the 10 years before the withdrawal must be repaid to the Government.
For information on withdrawing money from an RDSP, see Payments and Taxation or call 1-800-959-8281 (TTY users call 1-800-665-0354).
Beneficiaries with shortened life expectancies
The Government of Canada offers flexibility to people with shortened life expectancies (a life expectancy of five years or less) when making withdrawals from their RDSPs.
Beneficiaries with a life expectancy of five years or less will be able to withdraw up to $10,000 per year in taxable savings, subject to certain conditions. This amount includes grants, bonds, and earnings. In addition, beneficiaries can withdraw a pro-rated amount of their plan contributions.
Repayment of any remaining grants and bonds that were paid into the plan within the preceding 10 years is not required until the death of the beneficiary.
To take advantage of this measure, the plan holder(s) must submit a request to the financial organization, along with a medical attestation. The financial organization will then notify Human Resources and Skills Development Canada of the change to the plan.
Closure of an RDSP
Grants and bonds that have been in the RDSP for less than 10 years must be repaid to the Government if:
- the plan is closed; or
- the beneficiary loses eligibility for the Disability Tax Credit (Disability Amount); or
- the beneficiary passes away.
All other money in the RDSP, including private contributions, investment income earned, and grants and bonds that have been in the RDSP for more than 10 years, is paid to the beneficiary or the beneficiary’s estate.
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