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Home > Special Needs Planning > RDSP > Contributions Government Assistance

Who Can Contribute?

RDSP Contributions

  • While taxes on growth in the plan are deferred, contributions to an RDSP are not tax deductible.
  • Contributions into the plan can be made until the end of the year in which the beneficiary turns age 59.
  • Anyone can contribute to the RDSP as a gift for the beneficiary with written consent from the plan holder.
  • Contributions can be periodic lump sums or on a systematic basis such as monthly
  • RDSPs are specifically designed to build up a nest egg for the future financial security of the plan's beneficiary. What makes RDSPs so effective is that you can earn valuable incentives in the form of government grants and bonds.
  • Grants and bonds are only available until the end of the calendar year in which the beneficiary reaches age 49, so plan your contributions to maximize these incentives. Don't worry if you are late in setting up your RDSP or miss making a contribution. Beginning in 2008 and for a maximum of 10 years, unused grants and bonds are carried forward, giving you the opportunity to catch up by contributing more than $3,500 a year. Note that when catching up, the maximum payable in any one year is $10,500 for grants and $11,000 for bonds.
  • No additional forms need to be filled out. You will receive past grants and bonds as long as you were eligible for the Disability Tax Credit in the years for which you intend to catch up and your tax returns were filed for the two years prior to each year you intend to receive past grants/bonds. You need only contribute the correct amount to receive all of the grants/bonds to which you are entitled.
    • Your annual RDSP contributions may qualify for matching grants based on the amount contributed and your total family income.
    • Maximum annual grant is $3,500. and a lifetime amount of $70,000.
  • Contributions are limited to a lifetime maximum of $200,000

Government Incentives and Contributions

  • RDSPs are specifically designed to build up a nest egg for the future financial security of the plan's beneficiary. What makes RDSPs so effective is that you can earn valuable incentives in the form of government grants and bonds.
  • Grants and bonds are only available until the end of the calendar year in which the beneficiary reaches age 49, so plan your contributions to maximize these incentives. Don't worry if you are late in setting up your RDSP or miss making a contribution. Beginning in 2008 and for a maximum of 10 years, unused grants and bonds are carried forward, giving you the opportunity to catch up by contributing more than $3,500 a year. Note that when catching up, the maximum payable in any one year is $10,500 for grants and $11,000 for bonds.
  • No additional forms need to be filled out. You will receive past grants and bonds as long as you were eligible for the Disability Tax Credit in the years for which you intend to catch up and your tax returns were filed for the two years prior to each year you intend to receive past grants/bonds. You need only contribute the correct amount to receive all of the grants/bonds to which you are entitled.
    • Your annual RDSP contributions may qualify for matching grants based on the amount contributed and your total family income.
    • Maximum annual grant is $3,500. and a lifetime amount of $70,000.

Qualifying for the Canada Disability Saving Grant (CDSG)

  • Your annual RDSP contributions may qualify for matching grants based on the amount contributed and your total family income.
  • Maximum annual grant is $3,500. and a lifetime amount of $70,000.
Family Net Income* Contributions Grant Maximum
$95,259 or less On the first $500 $3 for every $1 contributed $1,500
$95,259 or less On the next $1,000 $2 for every $1 contributed $2,000
Greater than $95,259 On the first $1,000 $1 for every $1 contributed $1,000

Qualifying for the Canada Disability Savings Bond (CDSB)

  • Regardless of whether RDSP contributions are made, lower income families may qualify for government assistance in the form of a bond.
  • Maximum lifetime bond amount is $20,000.
Family Net Income* Bond
$31,120 or less $1,000
Between $31,121 and $47,630 $1,000 is reduced on a prorated basis
More than $47,631 No bond is paid

*Family net income is based on the income of the parents until December 31 of the year the beneficiary reaches age 18 and on the family net income of the beneficiary (and their spouse) beginning the year the beneficiary reaches age 19.
Income amounts shown are for 2019 based on income tax returns filed for the 2017 tax year. Family income from 2 years prior is used for assessing a potential bond or grant. This means that beneficiaries will have to file tax returns beginning the year they reach age 17 if they wish to receive the maximum grant and bond in the year they reach age 19.

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