RDSP Income Matching Rates for 2018

Update about the Registered Disability Savings Plan (RDSP)

As we entered into March, many RDSP account holders already received the “Annual Statement of Grants Entitlement.” This is the letter mailed by the “Employment and Social Development Canada (ESDC).” It states:

1) The total amount of accumulated grants you are entitled to
2) The maximum amount of grants available for the current year
3) The amount of contribution needed to attract the maximum grant in 2018

If you still have not received the letter, you could call the ESDC at 1866-204-0357. Their wait line is very short. In fact, I usually could get a hold to one of their representatives immediately.

Earlier this year, I contacted the Tax & Estate team of Mackenzie Investments again. They are one of our trusted long-term business partners. I often discuss my clients’ cases with them, especially when it comes to RDSP planning. They provided me with the updated figures of the family net income to calculate for the grants and bonds.

There hasn’t been too much change. The government once again increased the income threshold by a little, which makes it slightly easier to qualify for these benefits.

Below are the updates on the “Canada Disability Savings Grants (CDSG),” and “Canada Disability Savings Bonds (CDSB)“.

 

The chart below outlines the matching rates of “Canada Disability Savings Grants (CDSG)” in 2018

[table id=7 /]

The chart below outlines the matching rates of “Canada Disability Savings Bonds (CDSB)” in 2018

[table id=8 /]

  • * For a minor beneficiary, the family net income is that of his or her parents. When the beneficiary is over the age of majority, the family net income is that of the beneficiary and his or her spouse, if applicable.

 

There is an update about the Registered Disability Savings Plan (RDSP) in the recent federal budget. Below is a quote from the Mackenzie’s 2018 Federal Budget Bulletin:

“Registered Disability Savings Plan – Qualifying Plan Holders
Currently, for an adult individual whose capacity is in doubt, the plan holder for the individual’s Registered Disability Savings Plan (RDSP) must be the individual’s appointed legal representative.

A temporary Federal measure exists to also allow a qualifying family member (i.e., a parent, spouse or common-law partner) to be the plan holder of the individual’s RDSP. This measure is legislated to expire at the end of 2018.

Budget 2018 proposes to extend the temporary measure by five years, to the end of 2023. A qualifying family member who becomes a plan holder before the end of 2023 could remain the plan holder after 2023.”

Updates about the Disability Tax Credit:

I heard that some disabled persons got declined in renewing their “Disability Tax Credit.” Some would lose hope and just give up in re-applying. My advice is if you do believe you should be entitled to the disability tax credit, do not lose faith. After all, the benefits that you could be entitled is too big to be given up easily.

Here’s are some success stories from CTV:

“CRA backs down in row with diabetics denied disability tax credit.”
https://www.ctvnews.ca/politics/cra-backs-down-in-row-with-diabetics-denied-disability-tax-credit-1.3713390

“Autism group calls on CRA to make applying for disability tax credit easier.”
https://www.ctvnews.ca/politics/cra-backs-down-in-row-with-diabetics-denied-disability-tax-credit-1.3713390

 

  • Disclaimer: Above details are for general understanding only, and not meant to provide any financial advice. They could be subjected to change, and they are not guaranteed to be error-free. Please always consult a financial professional before making any decision. 

 

Samuel Li

Hi, I'm Samuel Li. I started my financial advisory practice in 2005, assisting Canadians in growing their long-term wealth while protecting their assets. One area I specialize in is servicing families with disabilities. If you'd like to explore how I can assist you, feel free to email me at Samuel@SamuelConsultant.com

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