How are withdrawals from an RDSP reported?
The Canada Disability Savings Grant, Canada Disability Savings Bond and investment income earned in the plan are included in the beneficiarys income for tax purposes when paid out of the RDSP. RDSP issuers report the taxable portion of the payments from the plan in box 28 of a T4A slip and send a copy of the slip to the beneficiary or the beneficiarys legal representative. The beneficiary includes this amount as income in their tax return for the year in which they receive it.
