Can I choose not to receive grant and bond money from the government and continue to contribute my own money into my RDSP while waiting for the 10-year rule to expire?
Yes, you can choose not to receive grants and bonds to shorten the length of time before receiving RDSP payments. The 10 year rule applies from the last year you received grants and bonds. You must request this through your financial institution where your RDSP is held to have the grants and bonds stopped.
Your financial institution will require you to sign a document stating that you no longer want to receive either the grant or bond (Declaration of Refusal). If you are not the holder of the plan, you will be required to have the holder make the request for you.
If you want to withdraw funds from your plan, before turning 59, you may want to continue receiving the grants and bonds for as long as you’re eligible and then pay back according to the new proportional repayment rule. This means for each $1 withdrawn, $3 of any grants or bonds paid into the plan in the past 10 years must be repaid. You would get to keep the interest / any investment gains on grants and bonds paid into your plan.
If you require further information, you can contact our disability planning hotline: 1-844 311-7526.