The RDSP 10-year holdback rule, explained

The RDSP's generous grants and bonds come with a string attached: they need to stay in the plan for 10 years.

The Assistance Holdback Amount (AHA)

The AHA is the total grants and bonds paid into the plan in the previous 10 years. It may have to be repaid if the plan is closed, the beneficiary passes away, or a withdrawal is made.

The 3:1 repayment

For each $1 you withdraw, $3 of grants and bonds received in the last 10 years must be repaid, up to the AHA. Example: withdraw $2,000 with an AHA of $30,000 and you repay $6,000.

How to plan around it

• Keep an emergency fund elsewhere (a TFSA works well).
• Consider stopping grant-attracting contributions about 10 years before planned withdrawals.
• Map LDAP start dates to the beneficiary's age: grants stop after 49, and LDAPs must begin by the end of the year they turn 60 — which lines up neatly with the 10-year rule.

Source: Canada Revenue Agency — RDSP rules; ATB RDSP Reference Guide 2026.

Watch

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This article is general information, current as of its publication date, and is not personal financial, tax or legal advice.