If you are disallowed the Disability Tax Credit

If a beneficiary is no longer eligible for the Disability Tax Credit (DTC), the holder of their RDSP has the choice of closing the plan or keeping it open beginning in 2021.

Money can still be withdrawn from the plan if the holder chose to keep it open, but:

Contributions are not permitted.
Amounts from a deceased parent’s or grandparent’s registered retirement savings can only be rolled over into the plan within four years after the year in which the beneficiary loses DTC approval.
You are not required to repay the grants and bonds in the plan only because of the loss of DTC approval.

Making withdrawals without DTC permission
Money from the plan can still be withdrawn at the holder’s request. Withdrawals made before the beneficiary turns 60 will result in the reimbursement of grants and bonds put into the RDSP in the ten years before the recipient’s loss of DTC authorisation.

If the beneficiary regains DTC eligibility
If the beneficiary regains DTC clearance, the plan will resume normal operation and contributions will be accepted.

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