Canadian Disability Savings Grant & Bond for RDSP

To help people with disabilities overcome the challenges of saving for their future, the Federal Government offers an attractive grant and bond. Depending on your financial situation, the government may contribute up to $90,000 into your account. To qualify, the beneficiary must be 49 years of age or younger.

Canadian Disability Savings Grant

For the contributions deposited into your RDSP, the Government will match them at 100%, 200%, or 300%, based on your family income tax returns for the previous two years.

Family income is $85,414 or less
The Government will grant a maximum of $3,500 for any one year, up to a lifetime limit of $70,000.

  • First $500 contributed each year, the Government will deposit $3 for every $1 contributed (up to $1,500/year)
  • Next $1,000 contributed each year, the Government will deposit $2 for every $1 contributed (up to $2,000/year)

Family income above $85,414
The Government will grant a maximum of $1,000 for any one year, up to a lifetime limit of $70,000.

  • First $1,000 contributed each year, the Government will deposit $1 for every $1 contributed (up to $1,000/year)

 

Canadian Disability Savings Bond

This government-issued bond is a saving initiative for low or modest-income families. If you are not able to contribute to your RDSP account, the government will make the deposits on your behalf. Qualified applicants must be 49 years or younger to receive the bond.

Family income less than $24,863

  • The Government will contribute $1,000 for 20 years into your account – that’s $20,000 free for just opening an account.

Family income between $24,863 and $42,707

  • The Government will contribute a portion of the $1,000 for 20 years into your account – the amount is based on a formula in the Canada Disability Savings Act.

Retro Contribution

Did you know that the yearly grant and bond limit can be carried forward from as far back as 2008? Depending on how long you have been eligible for the Disability Tax Credit, you may be able to receive a much larger government deposit within the first year of your RDSP.

Endowment 150

In addition to the RDSP grant and bond, the Vancouver Foundation offers a one-time $150 gift to help your RDSP grow. To learn more about this free financial contribution, visit www.endowment150.ca.

Tip for Parents

Up to December 31st of the year that a child turns 18, it is the parent’s family income that determines the size of the grant and bond contributions. However, from the start of the year in which the child turns 19, the Governments contributions will be determined by the child’s income.