Eligibility and contributions

Who can become a beneficiary of an RDSP?

You can designate an individual as beneficiary if the individual:

• is eligible for the disability amount;
• has a valid social insurance number (SIN);
• is a resident in Canada when the plan is entered into; and
• is under the age of 60. The age limit does not apply when a beneficiary's RDSP is opened as a result of a transfer from the beneficiary's former RDSP.

A beneficiary can only have one RDSP at any given time, although this RDSP can have several plan holders throughout its existence, and it can have more than one plan holder at any given time.

Notes
A person is eligible for the disability amount only if a qualified practitioner certifies on Form T2201, Disability Tax Credit Certificate, that the individual has a severe and prolonged impairment in physical or mental functions. The form must also be approved by the Canada Revenue Agency (CRA) and the person must be deemed to be eligible for the disability amount.

Effective for the 2010 tax year, an individual can request that the Minister of National Revenue make a determination as to his or her eligibility for the disability tax credit. The CRA will send the individual a notice of determination.

The holder does not have to be a resident of Canada. However, the beneficiary must be a resident of Canada when the plan is opened and when each contribution is made to the plan. RDSP payments can only be made to the beneficiary (or to the beneficiary's estate after the beneficiary's death). Contributors will not be entitled to a refund of their contributions.

Who can contribute to an RDSP?

Anyone can contribute to an RDSP with the written permission of the plan holder. See Opening an RDSP.