CDSB (RDSP)

Canada Disability Savings Bonds (CDSBs)

Is the Registered Disability Savings Plan (RDSP) only for the wealthy families?

In my previous posting, we have discussed over the Canada Disability Savings Grants (CDSGs). Although it is one of the most generous matching grant from the government of Canada, it often leads to the question: “If a family is earning low-income, and unable to make any contribution, will they be able to benefited from having a RDSP?”
Fortunately, beside the disability savings grant, there’s another feature within the RDSP, and that is the Canada Disability Savings Bonds (CDSBs).  The Government of Canada will deposit bonds of up to $1,000 a year to low-income Canadians with disabilities. No contributions is even required. The lifetime bond limit is $20,000. RDSP can receive this bond until the year in which the beneficiary turns 49.

 

 

According to the CRA:

“The amount of the bond is based on the beneficiary’s family income. The beneficiary family income thresholds are indexed each year to inflation. For 2012, if the family income is:

  • $24,863 or less (or if the holder is a public institution), the bond is $1,000;
  • between $24,863 and $42,707, part of the $1,000 is based on the formula in the Canada Disability Savings Act;
  • more than $42,707, no bond is paid.”

* Note that for minor beneficiary, the family net income is that of his or her parents, while beneficiary over the age of majority, the family net income is that of the beneficiary and his or her spouse, if applicable.

(Update: The chart for year 2016 can be found at: http://samuelconsultant.com/rdsp-2016-updates/)

Furthermore, another very attractive rule is that unclaimed CDSBs may be carried forward. One may claim back up the amount up to 2008 or the year the beneficiary is eligible for the disability tax credit, whichever comes the later. The maximum carry forward period can last for 10 years.

Not too long ago, I assisted a family in obtaining $5,000 of CDSBs even without any contribution. I wrote a blog in regards to this. If you are interested in reading, please click here. (Updates: As of March 8th, 2016, this client received $8000 of CDSBs)

 

Disclaimer:

The above details are for general understanding only, not intend to provide any financial advice. The details may be subjected to change without notice. Although we tried to post the details as accurate as we could, they are not guaranteed to be error-free, and may not be applicable to your specific situation. Please always consult a financial professional before making any decisions.

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Comments

    • Tammy
    • August 3, 2013
    Reply

    Just wandering how I would go about joining this. My son has major disabilities which is where this would help me get him some extra help.

    1. Reply

      Thanks for the question, Tammy. I`ve included more details in the private message.

    • PRIYATHARSHAN
    • September 3, 2013
    Reply

    Dear Sir,
    I become disability 2011-2013 (You are eligible to claim the disability tax credit for yourself). . so i went to bmo bank and open rdsp accounts with $1000 after 2 months .I didn’t receive any funds so i asked the bank they called government of canada they said my SIN didn’t match . i wanted that money also that time so. i withdraw .

    i would like to open again with your help can help open accounts ? how can is solve my problem ?

    1. Reply

      Hi Priyatharshan, thank you for your questions. The government grants and bonds will usually take awhile to be deposited into your RDSP. However, since your submitted SIN does not match the record in the government, you will have to re-submit the grants & bonds application with the correct details.

      I’d be happy to assist you with the RDSP account.

        • PRIYATHARSHAN
        • September 11, 2013
        Reply

        thank you very much

      1. Reply

        You’re very welcome and it was nice meeting you. Feel free to contact me if you need further assistance.

    • Mohamed
    • October 28, 2017
    Reply

    Hi I just found your address by chance I might be lucky or not . But here is my situation I am a disable person and recipient of odsp and not working. I file for disability tax credits and CRA assessed and re assessed my tax for 10 years but nothing come out can u tell me what is going on.thanks. …mohamec

    1. Reply

      Hi Mohamed, do you mean your disability tax credit is already approved?
      You can call the CRA (1-800-959-8281) to find out the status.

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