Will RDSP income be deducted from LTD?


Does anyone know if RDSP income will be deducted from LTD?
The law requires a person to start withdrawing from it at age 60.


It would have to be specified in your policy for this to be deductible. There is no general rule, depends on your policy wording.


It is not mentioned in my benefit booklet (I don’t have the actual policy).

What is the chance my caseworker would tell me it is deductible and not really check?
Not lie, just “assume” all income is deductible.


My experience is just what you suggest… there is often a lot of “assuming” going on that is based on honest beliefs, but just pain wrong – this applies to both sides, including sometimes even lawyers who should know better. I can’t conceive of a situation where an RDSP is deductible, but I have learned never to say never when it comes to insurance policies.


If they say RDSP income is deductible do I either accept what they say or hire a lawyer?
Is there any other option?


Get a legal opinion on whether they are right. If you are confident they are wrong, then do normal internal appeals steps and sue them if it makes sense to do so.


Thanks David,
It won’t be an issue for a while. :slight_smile:


Whether RDSP wirhdrawals are deducted from LTD payments will depend on the wording of your policy.

My question is related to RDSP and GIS.
For example, you’ve been saving in RDSP account for 30 years. At age 60 you retire and receive Old Age Security. I know RDSP withdrawals won’t affect OAS. But will they affect GIS (Guaranteed Income Suplement)?


The RDSP doesn’t affect most Income Benefits

Best of all, an RDSP will not affect most income benefits. This means that when the beneficiary receives a withdrawal from their RDSP, neither provincial disability benefits nor federal benefits such as Canada Pension Plan – Disability, Old Age Security payments and the Guaranteed Income Supplement, will be affected.

source http://rdspresource.ca/index.php/rdsp/