How To Maximize Your RDSP

An RDSP Grant And Bond Contribution Guide

By Jennifer Clyne

Canada Disability Savings Grant if net family income is less than $87,907
•    Contribution of $1,500 for an annual grant of $3,500, with a limit grant amount of $70,000 over a lifetime
•    Grants are paid up until the year you turn 49

Canada Disability Savings Grant if net family income is more than $87,907
•    Contribution of $1,000 for an annual grant of $1,000, with a limit grant amount of $70,000 over a lifetime
•    Grants are paid up until the year you turn 49

Canada Disability Savings Bond if net family income is less than $25,584
•    Annual amount of $1,000 no contribution required, with a lifetime limit of $20,000
•    Bonds are paid up until the year you turn 49

Canada Disability Savings Bond if net family income is between than $25,584 and $43,953
•    Annual amount of $1,000, prorated based on net income, no contribution required, with a lifetime limit of $20,000
•    Bonds are paid up until the year you turn 49

 
 

“The carry-forward measure”
If you opened and RDSP in 2008 or later, and contributed less than the maximum amount, you can claim Grant and Bond entitlements. You can use these amounts for current RDSPs, or RDSPs opened in January 2011 or later.

To apply for unused Grant and Bond entitlements, you must qualify to receive the Grant and the Bond. You can apply until the end of the year you turn 49.

The amount of Grant and Bond you qualify for depends on family income in those years. The Grant amount received also depends on how much you contributed to your RDSP. The matching rate will be the same as in the year the Grant entitlement was earned. Matching rates will be paid on RDSP contributions using entitlements at the highest rate first.

Grants and Bonds will be paid on unused entitlements, up to an annual maximum of:
•    $10,500 for grants; and
•    $11,000 for bonds.

Information source: Government of Canada