02/17/2024
One benefit of getting approved for the disability tax credit that is often overlooked is the Registered Disability Savings Plan (RDSP). The RDSP Bond and Grant program is something you do not want to overlook. Here's a brief overview of the bonds and grants.
Canada Disability Savings Grant (CDSG): The CDSG matches contributions made to the RDSP, with the matching rate depending on the beneficiary’s family income and contribution level. On the first $500 contributed, the government will provide $1,500 (3 to 1 contribution). On the next $1,000, the government will provide an additional $2,000 (2 to 1 contribution). That’s a total of $5,000 from a $1,500 contribution, every year. The grant can be received up to a lifetime maximum of $70,000.
Canada Disability Savings Bond (CDSB): The CDSB is available for individuals with lower family incomes. It provides a fixed amount of money annually into the RDSP, even if no contributions are made. The amount provided is $1,000 per year. The lifetime maximum for the CDSB is $20,000.
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What is the Registered Disability Savings Plan (RDSP)? ✔Tax Savings Tool ✔Disability Grants ✔Disability Bonds ✔Plus much more