If you would like easy to understand information on the new Registered Disability Savings Plan please visit www.rdsp.com.
This year the new income levels for 2010 Canada Disability Savings Grant and Canada Disability Savings Bond were announced. As I mentioned in the post New Income Levels for 2010!, the new income levels to receive the Bond for 2010 are changed every year to account for inflation. For 2010, if your income is below or equal to $21,947, you are eligible for the full $1,000. If your income is between $21,947 and $39,065, you are eligible for a pro-rated amount of the Bond.
This leads to the question, what is the formula to determine how much Canada Disability Savings Bond you will receive if your income is between $21,947 and $39,065?
To determine what amount you are eligible to receive, you need to use the following formula:
$1000 – [$1000 * (A-B)/(C-B)]
A= Family income, B=Lower threshold ($21,947) and C=Upper Threshold ($39,065).
For example, let’s imagine that someone with an income of $35,000 wants to figure out how much Canada Disability Savings Bond they are eligible to receive.
The amount of Bond would be determined by the following: $1000 – [$1000 * ($35,000-$21,947)/($39,065-$21,947)] = $1000 – [$1000* ($13,053/$17,118)] = $237.47