Plan

Institute
for caring citizenship

RDSP STEP-BY-STEP GUIDE

To Becoming Eligible, Opening
and Managing Your RDSP

Updated November 2022

Congratulations!
You have decided to open a Registered Disability Savings Plan (RDSP). This guide
is to help you complete each of the steps needed to:

1. Become eligible for an RDSP

2. Open an RDSP

3. Manage your money

This guide is for two groups of people:

• Individuals with disabilities who are opening an RDSP for themselves, and;
• Relatives or friends who are opening an RDSP for their relative or friend with a disability.
Call-out boxes of information labelled ‘family and friends’ provide additional information
on legal representation and ways to support someone with a disability.

ily
fam iends The RDSP is a savings tool that assists people
r
&f with disabilities to save money for their future.

Once an RDSP is opened, for every $1 of personal contributions you add, this
could be matched by the federal government up to $3, depending on your income
level. For example, if $1500 is deposited in an RDSP, the government could match
with up to $3500! If you are living on low-income the government will also put an
additional $1000 into the account each year for up to 20 years. This is automatic
and you don’t have to deposit any money into the RDSP to receive this money. By
helping yourself, your family member, or friend to open and manage their RDSP,
you are helping them plan for a brighter financial future.

For more information on the RDSP, check out www.rdsp.com, call 1-844-311-7526
or sign up for one of Plan Institute’s seminars on the RDSP at www.planinstitute.ca/
registered-disability-savings-plan
There are 10 Steps in this guide
As you complete each step, check the tick box and move to the next step.
Some steps you may have already done—that’s great—just tick them off
and move on.

STEP 1: Get Your Social Insurance Number

STEP 2: Get the Disability Tax Credit

STEP 3: File Your Income Tax Returns

STEP 4: Choose Your Financial Institution

STEP 5: Choose Your Holder

STEP 6: Open Your RDSP (all the things to take with you)

STEP 7: Invest Your Money

STEP 8: Update Your Will

STEP 9: Protect Yourself

STEP 10: The Road Ahead

 STEP 1

SOCIAL INSURANCE NUMBER

Definition: The Social Insurance Number (SIN) is a number that you

need if you want to work or receive other benefits. You
need a permanent or temporary SIN to open an RDSP.

If you forget your SIN or lose your SIN card, you can find the
number on your income tax return or contact a nearby Service
Canada office to get your number or replace your SIN card.

Every resident of Canada can get a SIN. If you are over the
How do you get one?
age of 12, you can apply for one yourself. Parents and legal
guardians can apply on behalf of anyone under the age
of majority (either 18 or 19 years old). A legal guardian or
representative can apply on behalf of an adult (see box on next
page).

It is easy to get your SIN, and it is free. You can apply online,
in-person or by mail.

It is easy to get To apply, you will need your birth certificate, Certificate of
your SIN, and it Canadian citizenship, Certificate of Indian Status or permanent
is free. You can residence card. If you are not a permanent resident of Canada,
you can still apply, but will need your work or study permit.
apply online, in-
These are called primary documents.
person or by mail.
Depending on how you apply and your age, you may need to
submit other documents to support your application, known
as ‘secondary documents’. Typically this could be a document
issued by a government (federal or provincial) and shows your
legal name (surname and given name) as well as your date of
birth. An example would be your passport or driving licence.

We recommend visting www.canada.ca/en/employment-social-

development/services/sin/before-applying to understand what
 Step 1 - Social Insurance Number 2

you need for your SIN and how to complete your application.
You can also give us a call on our helpline and we will guide
you through the process. Call us free on: 1-844-311-7526

Some other things to remember:

To apply in person, bring your documents to any Service

Canada office. There are over 500 across the country! Find the
closest one to you here: www.servicecanada.gc.ca/offices. If
everything is in order, you will get your SIN during your visit
on a piece of paper. Somebody can go with you to help, if you
want!

Not everyone is allowed to apply via mail. It is best to call

1-506-548-7961 to see if you are eligible to apply by mail. You
will need to send a completed SIN application form and your
documentation. If you are unable to print the application form,
you can order the form by phone.

If you are applying online, you will only need digital copies of
your documents, but these must be clear and legible.
 Step 1 - Social Insurance Number 3

i ly
fa m i e n d s You can go with someone to a Service Canada office
r
&f to help them get their SIN. Legal representatives can
also apply on behalf of a child or an adult.

If you are applying on behalf of an adult, bring the following to any

Service Canada office:

• The original primary documents of the person for whom you are
applying (see previous page)
• Your own SIN or other original primary document
• Original document or certified copy of legal guardianship
or representation
Individuals with other limitations preventing them from visiting a
Service Canada office and who also cannot use the assistance of
another individual to submit an application on their behalf may be
eligible to apply by mail. Individuals must first contact 1-506-548-7961
to determine if they are eligible to apply by mail.
 STEP 2

DISABILITY TAX CREDIT

Definition: Tax Credits are credits the government gives you. You claim
them when you file your income taxes. When you have a
credit, it reduces the amount of tax you have to pay.

The Disability Tax Credit (DTC) reduces your taxes in

recognition of your disability. You get the credit when you
file your taxes. People with severe and prolonged disabilities
qualify. The DTC is non-refundable—this means you will pay
less tax but you do not get any money back. You must apply
for the DTC before you can claim it on your taxes.

The Disability Tax Credit is the doorway to the RDSP. There are
also other benefits to having the DTC including:
You need the • The DTC offers a reduction in taxes that you or an eligible
Disability Tax Credit caregiver pay.
in order to open an
• If you are eligible for the DTC for previous years (up to 10
RDSP account previous years) then you can apply the credit to you or your
caregiver’s past tax returns and get money back.
• The DTC allows you to apply for the Canada Workers Benefit
which offers tax relief for lower-income workers.
• The DTC also allows legal guardians of a child with a
disability to claim the Child Disability Benefit which is a tax-
free monthly payment.
Applying for the DTC may take a few months and a few
attempts for you to be approved. Start now and get the ball
rolling! Some people with disabilities receive the DTC easily—
other people have a harder time. We will go over the process,
but, depending on your disability, you may want to get help
from a professional.
 Step 2 - Disability Tax Credit 5

To determine if you are eligible, you need to answer

Are you eligible
‘yes’ to each of these questions:
for the DTC?
• Do you have a mental or physical disability that is expected
to last, or has lasted, 1 year or more?  Yes  No
• Does one or more of these apply to you?  Yes  No
Are you blind?
Do you need extensive therapy or treatment?
Are you limited in activities that people need to do
regularly? (For example: speaking, hearing, walking,
using the bathroom, eating, getting dressed,
remembering, banking, finding your way around,
dealing with emergencies)
1. You or your support person completes Part A of the
How do you apply?
DTC Form, also called the T2201. You can find the DTC form
by searching for Disability Tax Credit or by going to www.
canada.ca/en/revenue-agency/services/forms-publications/
forms/t2201

Depending on your disability, take the form to one of

these people: your family practitioner, nurse practitioner,
optometrist, audiologist, occupational therapist,
physiotherapist, psychologist or speech/ language
pathologist. Ask them to fill out Part B of the form. You
may need to pay for this— when you call to make an
appointment, let the receptionist know what it is for and
ask how much it will cost.

2. Get the signed form back from your practitioner—you

want to be the person to send it in. If you don’t agree with
what the practitioner has written, or feel they have missed
information, you can then choose to take it to another
practitioner or get help from a professional.
 Step 2 - Disability Tax Credit 6

3. You are now ready to submit the forms! You can submit
them by mail, or online. You can also find where to send it
by visiting: www.canada.ca/en/revenue-agency/corporate/
contact-information/tax-services-offices-tax-centres and
choosing ‘benefits’.

To submit by mail, you will need to send the form to the

appropriate Canada Revenue Agency Tax Centre. You can
find the list of addresses on page 6 of the DTC (T2201) form.

If you prefer to submit online, you can also send the form
and any supporting documents using the secure online tool
“Submit Documents” in your Canada Revenue Agency (CRA)
MyAccount. This is a quick way to send your form and get
confirmation that the CRA has received your documents.

4. Remember to keep a copy of your completed form for

your records. You should also request that the medical
practitioner’s office keep a copy as well. This will help you or
your medical practitioner review and reference the material if
a follow up questionnaire from the CRA is requested or there
are issues with your application.

For more information on the DTC, refer

to the Canada Revenue Agency website
at canada.ca/disability-tax-credit or call
1-800-959-8281 for help.
 Step 2 - Disability Tax Credit 7

Your practitioner has an important job to do—they must fill

Talking to your
the form out right for you to get the DTC. If they don’t include
Practitioner
enough information, or miss anything, this could be a problem.
If you are unsure about your practitioner or do not know them
very well, you may want to get professional help to apply for
your DTC—such professionals will help the practitioners to fill the
forms out correctly.

When you see your practitioner, make sure your practitioner

understands what you have challenges with. Tell them as much
as possible about your disability and how it affects your day-
to-day life. It may be helpful to keep a journal of how your
condition is affecting the basic activities of daily living, and to
share this information with your practitioner.

We recommend using Disability Alliance BC’s online

tool to help individuals with their DTC applications. Visit
disabilityalliancebc.org/dtc-app for an online guide which
helps you prepare the documents you need to take to your
medical practitioner.

Also, tell your practitioner how important the DTC is for your
future. Many practitioners will not know about the benefits of
having the DTC and the difference it will make to your life. If
they know more about it, they may take extra care in filling out
your form. For example, you may want to tell them about the
Registered Disability Savings Plan (RDSP). We have included a
brief outline of the RDSP that you can give to your practitioner.

See page 10 & 11 for information you can

cut out and take to your practitioner.
 Step 2 - Disability Tax Credit 8

Now what? You wait. It usually takes a few months to hear back from the
government. Over the December holiday period, this wait
may be longer. You can see up to date wait times for your
application here: www.canada.ca/en/revenue-agency/services/
tax/individuals/segments/tax-credits-deductions-persons-
disabilities/disability-tax-credit/after-you-send-form-t2201-step-
step-process. You can call the CRA to discuss your application
on: 1-800-959-8281.

Once the CRA has made a decision, they will send a ‘Notice of
Determination’. If your DTC application is approved, the notice
of determination will show which year(s) you are eligible for the
DTC. Sometimes this can be ‘indefinite status’ which means
you can apply for the rest of your life. When your eligibility is
about to expire, the CRA will notify you one year in advance as
well as in the year it expires on your tax return. You will need to
read through all documents each year to make sure you don’t
miss the notice. You will need to submit a new DTC form to be
eligible for these future years.

Remember: you can view your DTC information in your CRA

‘MyAccount’.

You should tell the CRA if your medical condition improves to

the point that you no longer meet the criteria for the DTC.

What if I am You will get a letter explaining why you were turned down.
rejected? You can either send the form in again with another practitioner,
or make a formal objection. If you would like to launch a
formal objection, look at the CRA website on how to do this
or ask a professional DTC provider for assistance. A formal
objection to appeal the initial decision must be done within 90
days after the Canada Revenue Agency mails your notice of
determination.

For more information on appeals and the steps

involved, please refer to the CRA website.
 Step 2 - Disability Tax Credit 9

i ly
fa m
i e n ds Getting the DTC form filled out by a practitioner
r
&f is the most important step.

If at all possible, attend the practitioner’s appointment with your friend or

relative to help explain the importance of the RDSP and getting the DTC.
If the practitioner does not seem receptive, do not submit the form. A
rejected application is difficult to re-do.

You can claim the DTC on your income taxes if you provide regular and
consistent support for food, shelter or clothing to the person with the
disability.

• You are not sure if your practitioner is representing

you properly
We recommend • You have an episodic mental health disability
getting
• You receive a short eligibility period or are asked to
professional re-apply in a year
advice with your
• You have been turned down
DTC application if:
• You are unclear about your eligibility
 Step 2 - Disability Tax Credit 10

The Disability Tax Credit, also known as the DTC, is a tax

The Disability Tax
credit that offers a reduction in taxes that the individual with
Credit (DTC) and
a disability or their caregiver has to pay. This can be claimed
the Registered
retroactively and can result in tax refunds.
Disability Savings
Plan (RDSP) The DTC is a doorway to a number of other disability supports
including the Registered Disability Savings Plan (RDSP), an
Tear this page out and take it to your practitioner.

initiative by the Federal government of Canada. People must

be eligible for the DTC to open and benefit from an RDSP. For
more information on the DTC, we recommend visiting the CRA
website.

The RDSP is a Canada-only registered matched savings

plan specific for people with disabilities.

Here are some basics about the RDSP:

• For every $1 put in an RDSP, the federal government

could match with up to $3 depending on family income.
• For people living on low-incomes, the government will put
in up to $1000/ year and up to $20,000 in your lifetime. This
money will come into the RDSP automatically just by having
the account open.
• Anyone can contribute to an RDSP—family members,
friends, individuals themselves.
• The money can be invested in any way an individual or
family member chooses.
• People can have an RDSP and still get almost all provincial
and all federal disability benefits. The RDSP is considered
exempt income for these programs even when the person
starts to withdraw funds from the account.
 Step 2 - Disability Tax Credit 11

What does it • Financial security,

mean to people • the ability to participate in more daily social activities such
with disabilities as going out for dinner, taking a vacation or taking a course,
and their • the possibility of purchasing a home later in life,
families?
• peace of mind for themselves and their loved ones,
• a significant reduction of poverty.
Tear this page out and take it to your practitioner.

For more information, go to www.rdsp.com

A doctor may not feel comfortable filling out the form

because they don’t understand what is expected of them
or are confused by the forms. There are a number of
What if your different supports available to medical practitioners to help
them fill out DTC forms.
practitioner
needs help • Call the DTC helpline operated by the CRA:
filling out the 1-800-959-8281
DTC form? • Call Access RDSP’s helpline: 1-844-311-7526
• Access the DTC guides aimed at helping medical
practitioners navigate the forms. These are available
here: www.rdsp.com/dtcguides
 Step 2 - Disability Tax Credit 12

Definition: The Canada Child Tax Benefit (CCTB) is

Canada Child
a non-taxable amount paid monthly to help eligible
Tax Benefit families with the cost of raising children under 18 years
(For Families) of age. The CCTB includes the National Child Benefit
Supplement and the Child Disability Benefit.

If your child with a disability is under the age of majority,

you will need to apply for the Canada Child Tax Benefit
on top of the DTC. The CCTB allows the government to
calculate how much grant and bond your child is eligible
to receive.

You might have applied for the CCTB when you last filed
How do you apply? your income tax. If you didn’t, fill out the CCTB form and
mail it in to the nearest Tax Centre.
 STEP 3

FILE YOUR INCOME TAX RETURN

There are three ways In order for the government to know how much RDSP grant
to file taxes: and bond you will receive, you need to file your taxes every
year. If you have never filed taxes or have missed a few years,
you will need to file taxes for the past two years.

Most Canadians now file their taxes online using NETFILE–an

1. File taxes
electronic tax-filing service that sends your tax return directly
on your own
to the Canada Revenue Agency (CRA) using the Internet and a
NETFILE-certified software product.

This system is safe, more accurate, faster to send than by mail

and refunds are issued faster as well (in most cases, with direct
deposit, in as little as eight business days). You don’t have to
send in receipts, unless the CRA asks for them at a later date,
and get immediate confirmation that the CRA has received
your tax return.

You will find a list of certified desktop, online, and mobile

software products at canada.ca/netfile-software. Some of the
software is free.

If you do not have access to a computer, or prefer using paper,

2. File taxes by mail
you can also fill out your return by hand and mail it in.

To get this package, either download it online, stop by any

postal outlet or Service Canada office, or call to have one
mailed to you. You can see, download and order forms
and publications at www.canada.ca/en/revenue-agency/
services/forms-publications/tax-packages-years and select the
appropriate year. You can call the CRA at 1-855-330-3305 to
order forms and publications.
 Step 3 - File Your Income Tax Return 14

• Ask for a tax package for the Province you lived in last
December
• Once you get the package, fill out the forms and mail
them in
• If you have worked in the past year, you will need a T4 form
from your employer
• CRA will review your file and may ask you some follow-
up questions—keep any letter you receive from CRA in a
special place for next year

Taxes can be quite complicated, but doing it right is really

3. Get a professional
important, and can also result in getting more money back!
to assist you
If you have a complicated tax situation (you own property,
you receive money from several different sources, you have
significant medical expenses) or if you feel overwhelmed by the
forms, you might want to get help from a professional. There
are several types of professionals that can assist:

• If you need help but cannot pay for it, the Community
Volunteer Income Tax Program will help people who have
low incomes for free. Call 1-800-959-8281 or visit
www.canada.ca/en/revenue-agency/campaigns/free-tax-
help for the location closest to you.
• You can go to a walk-in tax clinic—the staff are not usually
accountants but the service can be relatively cheap.
• You can go to a professional accountant who understands
disability taxes.
• Go to www.rdsp.com for more information on the Disability
Tax Credit and filing taxes.
 Step 3 - File Your Income Tax Return 15

If you are interested in filing an income tax return yourself but

are not sure whether you will be comfortable we encourage
you to give it a try. You can always decide mid-way through to
get help from a community tax preparer or a professional tax
preparer if it seems too complicated.

You must file taxes every year in order to

continue to receive the correct amount of
grants and bonds in your RDSP.

If you have additional questions about tax filing,

including where to find professional help, please call
Plan Institute’s toll-free helpline at 1-844-311-7526.
 STEP 4

CHOOSE YOUR FINANCIAL INSTITUTION

You may already have savings or a chequing account with a

financial institution that offers the RDSP. In opening an RDSP, the
first thing to ask is: does your current financial institution offer
the RDSP? If so, then your choice might be fairly easy.

If you do not yet have an account with a financial institution, or

your financial institution does not offer the RDSP, you will need
to choose one. Most major financial institutions are offering
the RDSP—check www.canada.ca/en/employment-social-
development/programs/disability/savings/rdsp.html#financial
for updates on financial institutions.

Here are some questions to ask—our recommended answers

will help you choose the financial institutions best for you.

The RDSP can be confusing. You may want someone at a local

Is it easier for you to
branch to talk to you or you may be happy to talk to someone
talk to someone in
over the telephone. Financial institutions have different ways of
person or over the
helping their RDSP customers—choose
phone?
the way that is easiest for you.

• Is the financial institution easy to get to?

• Is it near transit?
• Is it accessible?
• What are the hours?
These are just some questions that may help you find
a financial institution that is comfortable for you to go to.
 Step 4 - Choose Your Financial Institutution 19

What are the Some financial institutions do not charge fees and others
administrative or might. Ask if there is an administration fee, set-up fee and/or
management fees? management fee. You may be willing to pay a fee, but if not,
another financial institution might be better.

You are allowed to move your RDSP from one financial

institution to another, no matter what the reason. But, you
might have to pay to do this. The fees tend to range from
$50-$100.

You need to know how your financial institution receives and

What is their
deposits money into an RDSP. This is especially important if
process for receiving
you are receiving disability benefits so that money does not
contributions?
enter your personal (savings or chequing) account. Money into
your personal account might be counted as income and can
be clawed-back by the government, where money directly into
your RDSP is not. You want a financial institution that accepts
deposits directly into your RDSP.

Some financial institutions may allow for joint holdership if

What are the
you want some assistance from a friend or family member to
rules around who
manage your RDSP. Remember that if anyone but you is to be
manages the RDSP?
Holder of your RDSP, they must be your legal representative
or qualified family member. There are three types of legal
representatives. You can appoint someone to manage your
financial affairs with a Power of Attorney. In BC you can also
appoint a Representative with a Representation Agreement.
The other option is where an adult guardian is appointed,
usually by a court. We recommend looking at the other options
first. Note that there is another temporary option for some
individuals, which is explained in the box on page 23.
 Step 4 - Choose Your Financial Institutution 20

Once you open your RDSP account, you will need to choose
What choices do
how to invest it. We will talk more about investing in Step 7.
you have to invest
Investing your money well means that your money will grow!
your RDSP?
Some financial institutions will have a set investment plan that
you must follow, where other banks will allow you to choose
a plan.

There are usually advisors at financial institutions that will

help you make good decisions on how to invest your money
depending on how old you are, how much money you have
and how quickly you want to use it. We suggest choosing one
that gives you different options for investment and
then talk to a financial planner.

Financial institutions are required to offer formula payments (a

What type of
set amount of money comes out regularly). However, you may
payments will the
want to take a large amount out to go on a trip, buy a car or
financial institution
put a down payment on a house. Not all financial institutions
allow out
will allow you to do this. If you want to take out large amounts,
of an RDSP?
you will need to make sure your financial institution allows this.

Most banks, credit unions, and wealth management firms

offer the RDSP. It is wise to shop around and become familiar
with the various financial institutions, the investment products
they sell, the guidance and advice they provide, and the fees
involved.

i ly
fa m
i e n ds The relationship with a financial institution is really
r
&f important, and should be a comfortable place for
your friend or relative to do business.

If at all possible assist your friend or relative to open their RDSP

account. You can help them establish a relationship with their
financial professional and be on hand to ask questions regarding fees,
investment options and payments.
 Step 4 - Choose Your Financial Institutution 21

The following form may help you decide what financial institution is the best one for your
RDSP. This may include banks, credit unions or other institutions who are approved to handle
RDSPs. Fill in the top row with the financial institutions you have researched. When you speak
to each institution, check or fill in the boxes to each question to compare them.

Name of financial institution

Type of financial institution -

bank, credit union, etc.

Easy to get to

Service in-person

Service by telephone

Fees

– administration

– management

– set-up

– transfer

Contributions go directly
into my RDSP

You can talk to a financial planner

about your investment options

Allows formula payments

Allows lump sum payments

How often will payments come

out of my account once I reach
60?

If you have additional questions about financial institutions, please call us at 1-844-311-7526.
 STEP 5

CHOOSE YOUR HOLDER

Definition: A Holder is the person who manages the plan, makes

decisions around investments and payment options.

You are probably the Holder if you are an adult and you have
‘contractual competence’. You can still have someone to assist
you in opening your RDSP and making financial decisions.

The financial institution needs to know that you are able to

manage your own financial affairs. If they have questions about
your ability to be the Holder, they may request that you have
a legal representative to open and manage the RDSP on your
behalf. See the box on the next page for another possible
option.

Contractual competence is being able to understand what

What is contractual
a legal or financial document or account means, how it will
competence?
impact you (both pros and cons), and what the consequences
are for not following the rules associated with the agreement.
 Step 5 - Choose Your Holder 23

i ly
fa m i e n d s
r For a child, the Holder must be a parent or guardian. You
&&ffriends can also have joint holders as in the case where two legal
parents wish to manage the plan. Parents can remain
Holders of the plan, even when the person becomes an
adult, but can also pass the holdership over or become
joint Holders.

When the beneficiary of an RDSP reaches the age of majority in the province/
territory where they reside, one of the following two situations will apply:

1. If the RDSP holder is the legal parent, the beneficiary may be added to the
RDSP as a joint holder if they so wish.. In all other cases, the beneficiary is the
only one who can be a holder of the plan once they have reached the age of
majority and is legally able to enter into a contract.

2. If the RDSP holder is someone other than the legal parent, that person or body
must be removed as the holder of the plan. In such a case, the beneficiary must
be added as the holder. If the beneficiary is not contractually competent, then
the legal representative of the beneficiary, such as a court appointed guardian,
can be the holder.

The table above illustrates who can be the holder in light of provincial legislation
setting out the age of majority, the general law on competency to enter into
contracts, and federal legislation governing the establishment of RDSPs.
 Step 5 - Choose Your Holder 24

*Beneficiary was under the Beneficiary Legal parent Legal

age of majority when the representative
RDSP was opened

The beneficiary is Yes The legal parent may remain the holder if he/she was No
contractually competent already the plan’s holder before the beneficiary has
reached the age of majority.

The beneficiary is not No Yes

contractually competent

The table above illustrates who can be the holder of the RDSP when the beneficiary
has reached the age of majority. This only applies to an RDSP which was opened when
the beneficiary was under the age of majority.

If a legal representative is appointed for the beneficiary after

Opening an RDSP
a qualifying family member has opened an RDSP, the legal
for an adult
representative will replace the family member as plan Holder.
that does not
have contractual However, if a beneficiary becomes contractually competent
competence: after a qualifying family member has opened an RDSP for the
beneficiary, the beneficiary may be added as a plan Holder or
become the sole plan Holder. The qualifying family member
may remain as a Holder or be removed altogether.

An adult that does not have contractual competence may have

an adult guardian or representative through a representation
agreement (in BC only) to open and manage the RDSP. Adult
guardians have different legal names in each province but
include adult guardian, power of attorney, tutor, trustee,
curator and committee.

An adult that does have contractual competence can appoint

a Power of Attorney or representative (in BC) to manage their
financial affairs.

For more information on legal representation options, call Plan

Institute’s toll-free helpline at 1-844-311-7526, or visit: www.
canada.ca/en/revenue-agency/services/tax/individuals/topics/
registered-disability-savings-plan-rdsp/opening-rdsp
 STEP 6

OPEN YOUR RDSP

Here you are! You have been approved for the DTC, you have
chosen your financial institution and you are ready to open your
RDSP. When you go to the financial institution, you will need to
take:

• Your social insurance number

• One piece of valid picture ID
You do not need to bring a copy of your DTC or income tax
returns—the financial institution and government will take
care of this. The financial institution will ask you to fill out
an “Application for Canada Disability Savings Grant and/or
Canada Disability Savings Bond” form. You must fill out this
form to start receiving grants and bonds. If you do not want to
receive the grant or bond you must still fill out the form and
complete the ‘Declaration of Refusal’ section.

The main reason that people would want to stop receiving the
Why would I not
grant and bond is if they want more flexibility with withdrawals.
want to receive
Making a withdrawal from your RDSP before you reach age 60
the grant and
is possible in most cases but depends on when and who put
bond?
money into the RDSP. If the government has put more money
in than personal contributions, this will limit the amount you can
take out.

Making a withdrawal may also lead to you having to pay back

some of the government money you have received. Grants and
bonds must be in the RDSP for 10 years before you can make a
withdrawal without having to pay back some or all of the grants
and bonds received within the last 10 years.
 Step 6 - Open Your RDSP 26

We encourage you to continue to receive grants and bonds

for as long as possible even if you think you may want to take
money out in 10 years. This is because you can keep all of the
interest earned on the grant and bond payments, and you may
not want or need to take money out in 10 years. By continuing
to receive the grants and bonds, your RDSP will keep growing.
You also may not need to repay all of the grants and bonds
received in the last 10 years and will end up with more than
what you would have if you had stopped accepting them. If
you take money out and have to repay grants and bonds, you
will not be able to get them back.

For more on withdrawals, please visit www.rdsp.com/

tutorial/how-do-you-get-your-money-out/ or contact
our toll-free helpline at 1-844-311-7526.

i ly
fa m i e n d s If a withdrawal is made within 10 years of receiving the
r
&f last grant or bond, your RDSP will have to repay some
of the money from the federal government. If you are a
legal representative, you will need to bring proof of that
representation.
 STEP 7

INVESTING YOUR MONEY

What kind of Now that you have opened your RDSP and money is being
investor are you? put in the account, you will need to decide how to invest your
money. When you invest, you hope to get back more money
than you put in. In other words, you want a good return on your
investment.

Investing is about choices. The choices you make reveal who

you are as an investor. This is called your investor profile. Your
investor profile may change over time, so it is good to revisit
your investment choice from time to time.

To discover your profile, ask yourself the following questions:

1. How much risk is
right for me? • How much risk is right for me?
• How much am I hoping to make by investing?
• How long do I plan to invest for?
Your chosen financial institution will use these answers to help
find the right investment for you.

Definition: Risk is the chance you take that your investments will not
meet your expectations, and may even lose money.

• Low risk investments are steady but provide a lower return

2. How much am I
hoping to make by • In most cases, to make more money, you have to take more
investing? risk
(your investment return) • It all depends on how much you need to meet your future
vision
 Step 7 - Investing Your Money 28

Time horizon is the number of years that you plan to invest. For
3. How long do I
example, saving to buy a house is a shorter-term goal. Saving
plan to invest for?
for retirement is a long-term goal.

Higher risk investments are often better for a longer

time horizon.

Once you decide what type of investor you are, you need to
The most important
choose where to invest your money—you can even choose a
thing is to talk to a
number of different types of investments. The picture below
financial planner.
shows the types of investments to make depending on your
risk. A financial planner will be able to explain and help you
choose the best investment for you.

High Risk or Speculative Investments: Futures, Stock

Options, High Yield Bonds, Precious Metals or Gems, Such
investments
Aggressive Growth Stocks, Emerging Markets, Mutual High
may yield
Funds, Collectibles, Antiques, Stamps, Small-Cap large gains Risk
Stocks, Undeveloped Land or losses

Moderate Risk Investments: Blue Chip Stocks, These investments

Quality Growth Stocks, Moderate Yield Bonds, may lose money but they
Income Producing Properties, Conservative Mutual offer a long-term potential
for higher rates of return
Funds, Large-Cap Stocks, Royalty Trusts

Low Risk Investments: Strip Bonds, Bond Mutual It is unlikely that these
Funds, Bankers’ Acceptances, Canada Savings investments will lose money
but they tend to offer a lower
Bonds, Government Bonds, Corporate Bonds
potential rate of return than the
higher risk investment

Cash & Cash Equivalents: Cash, Savings These are assets that can be made
Accounts, Guaranteed Investment accessible at any time (liquid). This is generally Low
Certificates, Money Market Funds, Treasury the safest category of investment Risk
but it produces the lowest rate of return
Bills, Insurance

Contact our helpline at [email protected] or 1-844-311-7526 if you would like more information
about these types of investments.
 Step 7 - Investing Your Money 29

The money in your RDSP can be invested in many different

Remember ways and will depend on where you have opened your RDSP.
Some of these options may or may not be offered by the
institution you have opened your RDSP with. The institution
may also charge different fees for the types of investments you
have. Generally higher returns on your investments also leads
to higher management fees.

The fee an institution charges typically range from 0.25% to

4%, but may be higher!

In order to make the best investment decisions for you, answer

the following questions before going to see a professional:

1. How old are you now?

2. How old will you be when you want to use your money?

3. W
 hat are you saving for? (House? Car? Money to top up
your disability benefits? Retirement?)

4. How much money do you receive each year?

5. Who else will be contributing to your RDSP?

6. List three ways that this money will help you.

 Step 7 - Investing Your Money 30

7. Have you ever invested money before?

8. How involved do you want to be in your investments?

9. D
 oes it matter to you what your money is invested in? (some
people do not like to invest their money in tobacco or oil
and gas companies—you can choose where to put your
money)

One of the risks with investing is not investing at all!

A difference of 3-4% in growth of your RDSP could
Remember
mean the difference between a few hundred dollars
of growth to tens of thousands of dollars of growth.
 Step 7 - Investing Your Money 31

Here are some • What are the fees for each investment option I have?
questions to ask • How will I know if my money is growing?
the professional • How easy is it to move my money from one option to
another?
• How often should I come in to see you?

i ly
fa m i e n d s If you are opening an RDSP and investing on behalf of
r
&f a family member in your household, these questions
will help determine your investment decisions:

How old are they?

What will they use the money for?
What is your family income?
How much are you planning on contributing
to the RDSP each year?
Is anyone else planning to contribute as well?
(grandparent, family friends, etc)
What difference will an RDSP make in their life?

To get an approximate projection of how your RDSP can

grow over time, how small changes in your deposits and
investments makes for big changes over time, and what your
RDSP withdrawal payments might look like—visit the Plan
Institute RDSP Calculator at www.rdsp.com/calculator/
 STEP 8

UPDATE YOUR WILL

Definition: Any person who has an RDSP, should have a Will. When
you pass away, your Will will say what will happen to the
remaining money. If you don’t have a Will, the government
will pass out the money according to provincial law.

Doing a Will can be easy or fairly complicated. We recommend

talking to a lawyer that understands your situation. If you are in
BC, you can review Plan Institute’s list of lawyers that people have
recommended over the years. The current list and feedback form
are available here: planinstitute.ca/resources/lawyers-list

Some adults do not have legal capacity to draft a Will, and the
remaining money will automatically be passed out according to
provincial law.

Families Caring If you are the holder for a child’s RDSP and you pass away,
for Children the next person who is appointed to act as the beneficiary’s
legal guardian can continue to manage the account.
However, that guardian will need to notify the financial
institution of a change in holder.

If you have additional questions about wills, including

where to find help from professionals, please call Plan
Institute’s toll-free helpline at 1-844-311-7526. Plan
Institute also offers a workshop on Wills, Trusts and
Estate Planning, and how this all ties into RDSPs. Visit:
planinstitute.ca/learning-centre/wills-trusts-and-estate-
planning
 STEP 9

PROTECT YOURSELF AND YOUR MONEY

Unfortunately, when there is money involved, some people may

try to take advantage of you. This is called either fraud or a
scam. Here are some ways to protect yourself and your money:

• Open your RDSP at a well known financial institution and only

deposit your money at the financial institute where you have
the RDSP.
• Do not invest in anything without the guidance of your
trusted financial professional.
• Ask family or good friends to assist.
• Never give out personal information such as your date of
birth, Social Insurance Number and bank account details to
someone over the phone or on the internet, unless you know
who it is you are talking to.

Definition: Scam/ Fraud—when someone tries to make money

by tricking another person

Five warning signs of scams

If they don’t know anything about you, how do they know what
1. You hear about
investments are right for you? Before you talk to anyone, get
it from a stranger
their name and company information and talk to someone you
trust about them.

Tip: Choose your professional carefully. Only deal with

people who are registered to sell investments in your
province or territory.
 Step 9 - Protecting Yourself And Your Money 34

If you can’t find out what you need to know, beware.

2. You can’t check
Always get a second opinion from someone you trust. Check
that the information
what you are told with a reliable source.
is right
This pitch is often aimed at people who live on a fixed income,
3. You hear you can
or those worried about not having enough money when they
make lots of cash
retire. When you invest, there is no guarantee you’ll make
fast, with little or no
money. And the chance of losing money goes up with the
chance of losing your
chance for bigger gains. Make sure you know what could go
money
wrong before you invest.

Scammers use this tactic to pressure you into making a quick

4. You get a ‘hot tip’
decision. They appeal to your fear of missing out on an
you’re not supposed
opportunity. They make the offer more attractive by suggesting
to tell anyone else
they have secret information about a company that the general
about
public doesn’t have.

Don’t fall for it. People with hot tips usually have their own
interests in mind, not yours.

Scammers often try to make you rush right in. They know that
5. You feel
if you have time to check things out, you may not fall for their
pressured into
scam.
buying
Another tactic they use is to gain the trust of a whole group of
people, like a church or community group. They know you may
be more likely to buy into the scam if your friends already have.
It’s a form of pressure based on the trust you place in your
friends.

If you don’t join the scam, the scammers may try every trick
they can to push you into buying. They may tell you how
sorry they feel for you. They may become angry and abusive.
They’re just trying to push you to change your mind.
 Step 9 - Protecting Yourself And Your Money 35

Remember: A good investment sells itself.

It doesn’t take a pushy salesperson. Never give a stranger any
personal or financial information, no matter how good the deal
appears to be, or how nice the person sounds.

If you think you have been scammed, you

can report it by calling the RCMP fraud
reporting line at 1 (888) 495-8501
For more information about scams and how
to protect yourself, go to: www.canada.ca/
en/revenue-agency/campaigns/fraud-scams
 STEP
STEP 10
2

THE PATH AHEAD—PLANNING

You have made it to Step 10, and are on your way to building
a more secure financial future using the RDSP. However, the
RDSP is just one tool of many to help you build a good life
now, and in the future.

Plan Institute began over 20 years ago to help secure a good

life for people with disabilities. To Plan Institute, the concept
of a good life means that every person:

• Knows the loving support of nearby friends and family

• Has the opportunity to contribute to, and participate in a
caring and inclusive community
• Is respected and empowered to make decisions
• Lives in a place they call home
• Enjoys a meaningful and financially secure life

Take a moment and think about those five things—what do you have already?

What would you like to know more about?

 Step 10 - The Path Ahead-Planning 37

At Plan Institute, we offer:

• Workshops and webinars on personal support networks,
will & estate planning, the RDSP and more. Go to
planinstitute.ca/learning-centre/events
• Publications such as “A Good Life’, ‘Safe and Secure’
and many more. Go to planinstitute.ca/learning-centre/
publications. They will provide you with inspiration and
practical knowledge for planning for yourself or your loved
one with a disability.

Plan
Institute
• The latest news and updates on the RDSP
Visit rdsp.com to see an RDSP tutorial, this Step-by-Step
for caring citizenship Guide, and our amazing RDSP Calculator
www.planinstitute.ca • $150 for your RDSP - The Endowment 150 grant offers
eligible people in British Columbia with disabilities a one-
time grant of $150 to help their RDSP grow. Visit www.rdsp.
com/endowment-150 to find out if you’re eligible and how
to apply.
• A helpline for people with disabilities, their families and
anyone who wants to know more about disability planning.
Call the helpline anytime from anywhere in Canada and one
of our family experts will answer your questions about the
Disability Tax Credit, the Registered Disability Savings Plan,
trusts & estate planning, advocacy approaches, government
benefit programs, social network building and more. Call
1-844-311-7526 or email [email protected] to reach one of our
advisors.
www.rdsp.com • Plan Institute’s sister organization, PLAN (Planned
Lifetime Advocacy Network), offers lifetime memberships
to help build personal support networks, make plans to
secure the future, and bring families together for mutual
support. For more information on PLAN, visit www.plan.ca
or drop them an email at [email protected].
Notes 38
 Plan
Institute
for caring citizenship

Email: [email protected]
Telephone: 604-439-9566
Fax: 778-300-2313

www.planinstitute.ca