Question 1

What is the difference between a DAP and an LDAP?

Accepted Answer

A Disability Assistance Payment (DAP) is a one-time, optional withdrawal from the RDSP that the beneficiary can request at any age once the plan is open. A Lifetime Disability Assistance Payment (LDAP) is a recurring annual withdrawal calculated by a federal formula: balance ÷ (life expectancy − current age + 3). LDAP can be started at any age but becomes mandatory once the beneficiary turns 60.

Question 2

What is the 10-year holdback rule (AHA)?

Accepted Answer

The Assistance Holdback Amount (AHA) is the rule that protects government contributions. Any grant or bond paid into the RDSP in the previous 10 years must be repaid at a rate of $3 of grants/bonds for every $1 withdrawn from the plan during that window. The AHA is recalculated each year — grants paid 11+ years ago are fully secure. To avoid clawback, wait at least 10 years after the last grant/bond before withdrawing.

Question 3

When does LDAP become mandatory?

Accepted Answer

LDAP withdrawals become mandatory in the calendar year the beneficiary turns 60. The formula is fixed by federal regulation: account balance divided by (greater of 80 or life expectancy + 3) minus the current age. Withdrawals must continue annually until either the account is fully depleted or the beneficiary dies. The mandatory amount is calculated each year based on the previous December 31 account value.

Question 4

How are RDSP withdrawals taxed?

Accepted Answer

Each withdrawal has two portions. The first is the return of the beneficiary's own contributions, which comes back completely tax-free (since they were not deducted on the way in). The second is grants, bonds, and investment growth, which is taxable as ordinary income to the beneficiary in the year of withdrawal. Because most RDSP beneficiaries have low incomes, the actual tax owed is often minimal or fully offset by the basic personal amount and disability tax credit.

Question 5

Can I take a DAP if I want to buy something specific?

Accepted Answer

Yes, the DAP is designed exactly for this. Once the 10-year holdback window has passed, you can request any amount up to the full balance for things like a home down payment, accessible vehicle, equipment, or any other purpose — the federal government does not restrict how the money is used. Inside the holdback window, you can still take a DAP, but you should factor the $3-for-$1 clawback into the net amount you would actually receive.

Question 6

Does an RDSP withdrawal affect provincial disability benefits?

Accepted Answer

Generally no. RDSP balances and withdrawals are fully exempt under most provincial disability income programs — ODSP (Ontario), AISH (Alberta), BC PWD, and Quebec's solidarité sociale all exclude RDSP assets and payments from their income/asset tests. This is intentional federal-provincial coordination. Other income-tested programs (housing, prescription drugs) may have different rules, so verify before drawing large amounts.

Question 7

What happens to the RDSP when the beneficiary dies?

Accepted Answer

The plan must be closed by December 31 of the year following the beneficiary's death. All grants and bonds received in the previous 10 years must be repaid to the federal government (the AHA). Remaining funds are paid to the beneficiary's estate — contributions tax-free, growth and any remaining grant/bond portion taxable as income on the final return. If the beneficiary had a spouse with their own RDSP, no spousal rollover exists (unlike RRSPs).

Question 8

When does CDSG/CDSB become "safe" to withdraw without claw-back?

Accepted Answer

A grant or bond becomes "safe" exactly 10 calendar years after it was deposited. Once the entire 10-year holdback window passes since the last CDSG or CDSB receipt, the AHA drops to $0 and you can withdraw any portion of the RDSP without triggering the $3-per-$1 repayment rule. Practically: if your last grant arrived in 2020 and you wait until 2031 to take a large DAP, no grants or bonds need to be repaid. Filling in the "Year of last grant or bond received" and "Planned withdrawal year" fields in this calculator shows you exactly when the window closes, plus a year-by-year wind-down of the AHA so you can pick the earliest safe withdrawal date. Income tax on the growth/grant/bond portion of the withdrawal still applies in any year.

Year	AHA	Years remaining
2026	$60,000	8
2027	$60,000	7
2028	$60,000	6
2029	$60,000	5
2030	$60,000	4
2031	$60,000	3
2032	$60,000	2
2033	$60,000	1
2034	$0	0
2035	$0	0
2036	$0	0

RDSP Withdrawal Calculator

AHA (Assistance Holdback Amount) at withdrawal

10-year AHA wind-down (no new grants received)

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10-year holdback rule

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DAP, LDAP and the 10-year rule: what to know

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