When you take money out of your RDSP, you can use it for anything that you want.  But…there are a couple of very important things you need to remember!

  • If you receive a federal government grant or bond, there is a “holdback period” of 10 years from the year of the last federal contribution. Note that there has been a recent change in the penalty: Up until the end of 2013, if you made a withdrawal from your plan during that period, you would have had to pay back all funds received from the federal government in the past 10 years. As of January 2014 however, this rule changed to become a “proportional repayment rule” so that for each $1 withdrawn from an RDSP, only $3 of any grants or bonds paid into the plan in the 10 years will need to be repaid.
  • If the federal government contributed more to your RDSP than you (and your family and friends) did, then you can withdraw a limited amount in one year. This is either the money in your RDSP divided by the number of years before you turn 83, or 10% of the amount in the plan per year.
  • You must begin to receive money from your RDSP starting at the age of 60. HOWEVER, you can take one-off payments or start regular payments at any age.

We recommend consulting your financial advisor for more information about withdrawing from your RDSP.