Raise RDSP contribution limit

AI summary

Petitioners ask that the RDSP lifetime limit be raised to $300,000 and contribution room indexed to inflation, effective April 1, 2026. The government responds it will not raise the limit and instead plans DTC-access improvements.

AI summaries describe petitioners’ requests and claims. Consult the official record for the full text.

Official petition

Petition to the Minister of Finance and National Revenue Whereas: The Registered Disability Savings Plan (RDSP) introduced in 2008 by the Federal Government has been a great vehicle for disabled individuals to create future savings; Since 2008 the costs of living has increased dramatically; Affordability has changed for individuals families, especially for those who have disabilities; There has been no meaningful increase to the amount of contribution room to this account; Increasing contribution room would not require additional federal expenditures; and Enabling individuals to save more results in less reliance on government assistance later. We, the undersigned, Citizens of Canada, call upon the Minister of Finance and National Revenue to: 1) Increase the lifetime contribution from $200,000 lifetime to $300,000 lifetime, a number which reflects the Government of Canada's inflation calculator from 2008 (RDSP inception) until today; 2) Have the inflation rate account for the contribution room each year in the same manner that RRSP, TFSA, CPP and all other accounts and services are increased on an annual basis; and 3) Make these changes made by April 1, 2026.

Government response

Response by the Minister of Finance and National Revenue Signed by The Honourable François-Philippe Champagne The Government of Canada takes seriously the responsibility to help all Canadians get ahead and is especially committed to reducing poverty and increasing financial well-being for persons with disabilities. The Registered Disability Savings Plan (RDSP) is a tax-assisted savings plan that was introduced in 2008 to better enable individuals with severe disabilities, and their families, to save for their long-term financial security. Basic parameters for the plan, including its lifetime contribution limit, reflect recommendations made by the 2006 Expert Panel on Financial Security for Children with Severe Disabilities. To encourage long-term savings through the RDSP, the federal government directly contributes to RDSPs through the Canada Disability Savings Program. This includes a matching Canada Disability Savings Grant of 300%, 200% or 100% (up to a lifetime limit of $70,000) depending on a beneficiary’s adjusted family net income and the amount contributed to their RDSP. The federal government also contributes up to $1,000 per year (up to a lifetime limit of $20,000) to the RDSPs of low-income beneficiaries through the Canada Disability Savings Bond, for which no contributions are required. Investment income earned in an RDSP grows tax-free and is only included in the beneficiary’s income for tax purposes, alongside the grants and bonds, when paid out of an RDSP. The lifetime contribution limit of $200,000 was established in legislation based on recommendations of the Expert Panel. It is sufficient to allow individuals to maximize the RDSP grant and bond program. In addition, individuals can use other tax-preferred vehicles such as the Tax-Free Savings Account, which is a flexible, general-purpose savings vehicle that is available to all adult Canadians to earn tax-free investment income. To improve access to the RDSP and other federal programs and benefits that rely on eligibility for the Disability Tax Credit (DTC), the government proposed changes in its Spring Economic Update 2026 to make it easier for persons with disabilities to access the DTC. In particular, the government is proposing to: Streamline the application process for individuals with a formal diagnosis of certain long-lasting medical conditions. These conditions, listed in an annex to the Spring Economic Update 2026, entitled Tax Measures: Supplementary Information, have been identified through the Canada Revenue Agency’s experience in processing applications as satisfying the disability impact criteria for the credit. Expand the list of medical practitioners who can certify eligibility for the DTC to include podiatrists (for a specific type of impairment) and broaden the types of impairment that can be certified by physiotherapists, speech-language pathologists and occupational therapists, within the scope of their training and practice. Recognise provincial or territorial public guardians and trustees as being qualified to certify applications for the DTC for adults in their care for property matters who have a valid certificate of incapacity. Once implemented, these improvements, which would not change the disability criteria to qualify for the DTC, should help more eligible Canadians access the DTC and related federal disability support by making it easier to obtain certifications for their impairments. Each year, more Canadians are using RDSPs to save for themselves or someone with a disability. Fairness will continue to be a top priority as the Government considers further improvements to the tax system for persons with disabilities.