Human Resources and Skills Development Canada
Symbol of the Government of Canada

Human Resources and Skills Development Canada

www.hrsdc.gc.ca

Newsletter Insert
Registered Disability Savings Plan

Use this insert in your organization’s newsletter to share information about the RDSP, the grant and the bond.

Savings Tools to Help Canadians with Disabilities and Their Families Invest in Their Future

In December 2008, the Government of Canada launched the Registered Disability Savings Plan (RDSP), the Canada Disability Savings Grant and the Canada Disability Savings Bond to help Canadians with disabilities and their families save for the future.

If you are a Canadian resident under the age of 60 and are eligible for the Disability Tax Credit, you can open an RDSP. Plans can be opened at several financial organizations across the country. Parents or legal guardians may open an RDSP for a minor. 

There is no annual contribution limit to an RDSP. The lifetime contribution limit is $200,000. Friends and family can also contribute to a plan with written permission of the plan holder. Money contributed to the plan accumulates tax free, until it is withdrawn.

To encourage savings, the Government of Canada introduced the Canada Disability Savings Grant and the Canada Disability Savings Bond.

The Canada Disability Savings Grant is a matching grant that the Government deposits into the RDSP. Each year, the Government will match contributions made by paying up to $3 for every $1 paid into the plan, depending on the amount contributed and on the beneficiary’s family income. The Government will deposit a maximum of $3,500 each year, with a lifetime limit of $70,000. Grants will be paid into the RDSP until the year the beneficiary turns 49.

For example

If the beneficiary’s family income is less than or equal to $83,088*:

  • The Government will deposit $3 for every $1 on the first $500 contributed to the RDSP and $2 for every $1 on the next $1,000.

If the beneficiary’s family income is over $83,088*:

  • The Government will match $1 for every $1 contributed on the first $1,000.
*
Income amounts shown are for 2011 and will be updated yearly based on the rate of inflation.

The Government of Canada will also pay a Canada Disability Savings Bond of up to $1,000 a year to low-income and modest-income Canadians. The good news is that no contributions are required to receive the bond; simply open an RDSP and fill out an application form at the financial organization where you have your RDSP. Bonds will be paid into the RDSP until the year the beneficiary turns 49. There is a bond limit of $20,000 over the beneficiary’s lifetime.

For example

If the beneficiary’s family income is less than or equal to $24,183*:

  • The Government will deposit $1,000 each year into the RDSP.

For beneficiary family incomes between $24,183 and $41,544*:

  • The Government will deposit a portion of the $1,000. As your income increases, the bond amount paid decreases.
*
Income amounts shown are for 2011 and will be updated yearly based on the rate of inflation.

Improvements to the RDSP, the Grant and the Bond

The Government of Canada has introduced new measures to the RDSP, the grant and the bond that provide more flexibility to Canadians with disabilities and their families when saving for the future.

If you or a loved one currently has an RDSP or are thinking about opening a RDSP, this is important news for you:

  • Beginning in January 2011, you can claim unused grant and bond entitlements from the past 10 years (starting from 2008, the year RDSPs became available). This applies to new and existing plans.

If you have a child or grandchild with a disability, this is important news for you:

  • As of July 2011, parents or grandparents will be able to arrange for some or all of their retirement savings to be transferred, tax-free, to the RDSP of their financially dependent child or grandchild when they pass away.

Money paid out of an RDSP will not affect a person’s eligibility for federal benefits, such as the Canada Child Tax Benefit, the Goods and Services Tax credit, Old Age Security or Employment Insurance benefits. In addition, RDSPs will have little or no impact on provincial and territorial social assistance payments. For further details, contact your provincial or territorial government.

For more information on the RDSP, the grant and the bond, including a list of participating financial organizations, please visit Human Resources and Skills Development Canada’s website at www.disabilitysavings.gc.ca or call 1 800 O-Canada (1-800-622-6232). TTY users can call 1-800-926-9105.

For more information on opening an RDSP, visit Canada Revenue Agency’s website at www.cra-arc.gc.ca/rdsp/ or contact the agency at 1‑800‑959‑8281.  TTY users can call 1-800-665-0354.

Footer

Date Modified:
2011-11-03