RDSP retroactivity question

Hi,

I am applying for the DTC for a medical issue I had from 2015 to 2023 that impaired elimination related functions. It was corrected with surgery in 2023 and now I function normally again. I meet my doctor in Jan. 2024 to apply for the DTC. I am 38 years old.

My question is, am I still able to take advantage of the RDSP. Given I no longer have the medical problem, does this prohibit me from being able to open and contribute to an RDSP and thus unable to receive the retroactive contributions (bonds and grants) offered by the government.

Hopefully someone can help answer this.

If you had an RDSP then I think you would have to close it within a certain time after you are no longer disabled.
I don’t think you get can the DTC now but I don’t know.
You have to describe how your disability affects your life.
I’m not sure if it says “currently affects…” but it is probably implied.
This is a question for a lawyer, @David_Brannen

Hi Jammer. I’ve never had an RDSP or a DTC. I just discovered after some research that my condition likely would’ve qualified from the period of 2015-2023 when I had symptoms. My symptoms have pretty much been corrected now after the surgery. From my research it seems that a DTC can be issued for a period one was eligible, however if I apply and get approved in say, 6 months from now, and they put a expiry on it of 2023 it wouldn’t be “active” anymore.

Thus the question of the RDSP, most sites I’m seeing seem to indicate that you need to be “eligible” (I’m guessing this means having a currently active DTC) in order to open an account. It would be great to qualify for the bonds/grants from 2015-2023, and yes clearly if the impairment has resolved, I wouldn’t expect any future contribution room from 2024 onward.

I don’t see anyone else who has asked this question before, so it would be great to hear from someone who has experienced a similar situation.

@jammer you’re no longer required to close it when you cease being disabled, but you aren’t allowed to contribute any more.

Which might be a backdoor answer to the original question? I doubt that anyone here will be able to answer. This is a rare situation that would have been impossible before 2019 or so since before that you would have had to collapse the RDSP when you stopped being disabled. I would say to contact whatever government agency is responsible for RDSPs.

It is my understanding based on everything I know that in order to open an RDSP you must have an active Disability Tax Credit at the time you open it. So if you do not quality in 2024, then you cannot open one. Now, that being said, maybe there is an exception you could request. But I don’t know. It is a unique situation so you could contact the RDSP folks and ask them.

Here is the actual law you can read: Income Tax Act

disability savings plan of a beneficiary means an arrangement

  • (a) between
    • (i) a corporation (in this definition referred to as the “issuer”)
      • (A) that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee, and
      • (B) with which the specified Minister has entered into an agreement that applies to the arrangement for the purposes of the Canada Disability Savings Act, and
    • (ii) one or more of the following:
      • (A) the beneficiary,
      • (B) an entity that, at the time the arrangement is entered into, is a qualifying person described in paragraph (a) or (b) of the definition qualifying person in relation to the beneficiary,
      • (B.1) if the arrangement is entered into before 2027, a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary,
      • (B.2) a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is not a qualifying person in relation to the beneficiary but is a holder of another arrangement that is a registered disability savings plan of the beneficiary, and
      • (C) a legal parent of the beneficiary who, at the time the arrangement is entered into, is not a qualifying person in relation to the beneficiary but is a holder of another arrangement that is a registered disability savings plan of the beneficiary;
  • (b) under which one or more contributions are to be made in trust to the issuer to be invested, used or otherwise applied by the issuer for the purpose of making payments from the arrangement to the beneficiary; and
    *** (c) that is entered into in a taxation year in respect of which**
    ** * (i) the beneficiary is a DTC-eligible individual, or**
    • (ii) the beneficiary is not a DTC-eligible individual and an amount is to be transferred from a registered disability savings plan of the beneficiary to the arrangement in accordance with subsection (8). (régime d’épargne-invalidité)