The Canada Disability Savings Grant is a way for the federal government to contribute money to your RDSP. The CDSG is a matched grant of up to 300 percent, so that means that for every $1 put in an RDSP account, the federal government can (depending on family income and contributions made) match it with up to $3!
The annual grant limit is $3,500, and $70,000 over your lifetime. Grants are paid into the RDSP until the end of the year you turn 49 years of age.
The amount of Disability Savings Grant you receive depends on your income tax returns for the previous two years. Click here for more information on the CDSG and income thresholds.
How can I get the maximum allowed grant every year?
If you want to receive the full amount of grant every year, you will need to contribute either $1,000 a year or $1,500 a year, depending on which grant you are eligible for.
If your family income is less than or equal to $91,831:
- For the first $500 you contribute each year to the RDSP, the Government will deposit $3 for every $1 you contribute, up to $1,500 a year
- For the next $1,000 you contribute each year to the RDSP, the Government will deposit $2 for every $1 you contribute, up to an additional $2,000 a year
If your family income is greater than $91,831:
- For the first $1,000 you contribute each year to the RDSP, the Government will deposit $1 for every $1 you contribute, up to $1,000 a year.
Can I receive both the grant and the bond at the same time?
Yes, you are allowed to receive the grant and bond at the same time.
When is the deadline for yearly contributions?
There is actually a 10-year deadline. When an RDSP is established, the grant will be paid on unused entitlements for the preceding 10 years, but no earlier than 2008 the year the RDSP first became available. Grants will be based on the beneficiary’s family income in those particular years. Making a contribution automatically triggers the grant.
Is the grant paid retroactively if I have not contributed in past years?
Yes. When you establish an RDSP, the grant is paid on unused entitlements for the preceding 10 years (but only dating back to 2008, the year of the first RDSP.) These “Catch-up” grants (CDSGs) are limited to $10,500 in any one year.
How do I know how much in matching grants I have available?
Each year the government sends each plan holder an annual breakdown called a “Statement of Entitlement” explaining how much grant room is available and how to maximize it for the year.
Will I receive the Grant if I don’t make any contributions?
No. Since the Grant is a matched grant you must make some contribution to receive it. However, you will still receive the Canada Disability Savings Bond if you don’t make contributions (depending on your income).
*If you are a resident of BC and are on low-income, Plan Institute can provide you with a $150 grant to jump start your savings. Apply here: www.rdsp.com/endowment-150/