With written permission from the plan holder, anyone can contribute to an RDSP. The plan holder is the person who opened the RDSP. You can contribute up to the end of the year in which the beneficiary turns 59. You must pay any income tax owing on the money you contribute.
The government will also contribute to your plan – in some cases, even if you don’t save a cent. The amount of funding you receive is based on your family net income. This equals:
- the income of the beneficiary’s family until the beneficiary reaches age 18, or
- the family net income of the beneficiary (and their spouse, if they have one) starting the year the beneficiary reaches age 19.
Tip: You can become a plan holder if you are a parent of a beneficiary or:
- their guardian, tutor, or curator, or
- an individual who is legally authorized to act for the beneficiary, or
- a public department, agency, or institution that is legally authorized to act for the beneficiary.
How much can I contribute to an RDSP?
You can contribute any amount you want each year to an RDSP, within certain limits and rules. For example:
- You can only contribute until the end of the year in which the beneficiary turns 59 years of age.
- There is a lifetime limit on the total contributions each beneficiary can receive from an RDSP. That limit is $200,000.
Remember: You don’t have to save a lot each year to open an RDSP.
Even $20 a month can add up over the years. With government grants added to your savings, that number could triple. So even a small amount of savings will grow over time.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.