Will RDSP Withdrawals Affect GIS Eligibility? A Common Question from Families

We recently received a great question from a family member, and we thought others in our community might be wondering the same thing:

My sister is 63 and will turn 65 in November 2026. Since turning 60, she’s been receiving annual withdrawals from her Registered Disability Savings Plan (RDSP). I know that when she turns 65, she’ll stop receiving the provincial Persons with Disabilities (PWD) benefit and will instead begin receiving federal benefits like CPP, OAS, and GIS. I’m worried that her RDSP income might reduce or disqualify her from receiving the Guaranteed Income Supplement (GIS). I haven’t been able to find a clear answer from CRA. Does RDSP income count against GIS eligibility?”

The short answer is: No. RDSP withdrawals do not count as income for the purposes of GIS eligibility.

This is a vital piece of financial planning information for people with disabilities and their families. The RDSP was created in part to avoid the problem of clawbacks — where receiving one benefit can reduce or eliminate another. Withdrawals from an RDSP are not considered taxable income and are not included in the income calculations used to determine GIS eligibility.

So, when a person turns 65 and begins receiving GIS, their RDSP income will not jeopardize their eligibility or reduce their GIS amount.

Although this information isn’t always easy to find directly on CRA’s website, it is embedded in federal legislation and policy. Many advocacy organizations, including PLAN, have confirmed this with policymakers and financial experts over the years. It’s one of the few planning tools that truly works in harmony with other government supports.

If you or your family are navigating this transition and need help with paperwork or benefit applications, a member of our team can help. You’re not alone, and there are ways to plan that protect both security and choice.

As always, we’re here to help.

— The PLAN Team

 

References & Resources

Note: While RDSP withdrawals are not considered income for GIS purposes, other types of income (like CPP or employment income) are. Families should always review their specific situation with a trusted advisor.