By Jason Heath, CFP on June 12, 2026 Estimated reading time: 3 minutes

How do you take RDSP withdrawals?

By Jason Heath, CFP on June 12, 2026 Estimated reading time: 3 minutes

Learn how RDSP withdrawals work, including the 10-year rule, grant repayment requirements, taxes, and mandatory withdrawals after age 60.

Registered disability savings plans (RDSPs) were created in the 2007 federal budget, and the first accounts were opened in December 2008. It took a while for financial institutions to offer them and, even now, you cannot open RDSPs everywhere. 

Most Canadians with RDSPs have only ever deposited money. This is a primer on withdrawing from these specialized accounts.

If you qualify for the disability tax credit (DTC), you can open an RDSP. The disability tax credit is a non-refundable tax credit for Canadians who have a qualifying physical or mental impairment. 

You apply to the Canada Revenue Agency (CRA) for approval, and beyond the annual tax savings potential, the DTC is the gateway to opening an RDSP. 

Government grants and bonds

RDSP contributions attract government grants and bonds that vary depending on the beneficiary’s adjusted family net income. 

For income below $114,750 for 2025, the grants are:

$3 for every $1 contributed on the first $500 contribution (so, up to $1,500 a year of grants)

$2 for........

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