In order to set up an RDSP, you must be eligible for, and approved for the disability tax credit.

Additionally, you must also be under the age of 60, and be a Canadian resident with a Social Insurance Number (SIN)

The next step is to open the account. Meet with an RDSP expert like Bobby Vu to get the account open, as well as take care of all the ins and outs of the Grants and Bonds

To meet with someone on our team, click here to book a time at your convenience. Until further notice, all meetings are being held over the phone, or via zoom

Eligibility is based on beneficiary’s family income, (plus their spouse if applicable). Up until Dec. 31 of the year the beneficiary turns 18, the family income is based on the beneficiary’s parent(s) family income. The income thresholds to qualify change from year to year

You must apply for the grants and bonds in order to receive the money you’re eligible for into your RDSP

We strongly recommend working with an expert to ensure these are correctly applied for and you don’t miss out on thousands

2021 Grants

Qualifying for the grants is based on the income for 2 years prior. For example, 2021 entitlements are based on 2019 income

If the beneficiary’s annual income is equal to or less than $98,040:

• For the first $500 contributed into the RDSP, the beneficiary will receive $3 for every $1 contributed. For the next $1,000, the beneficiary will receive $2 for every $1 contributed
• The maximum grant for any one year is $3,500. The lifetime maximum grant is $70,000

If the beneficiary’s annual income is more than $98,040: 

• For the first $1,000 contributed into the plan, the beneficiary will receive $1 for every $1 contributed
• The maximum grant for any one year is $1,000. The lifetime maximum is $70,000

A beneficiary may qualify for the $3,500 grant one year, and $1,000 the next year (as it is completely dependent on their income for the two years prior)

2021 Bonds

• If the beneficiary’s annual income is less than or equal to $32,028, the federal government will put $1,000 into your RDSP each year. If you are younger than 18, then it is based off of your family’s income.
• If the beneficiary’s annual income is between $32,028 – $49,020, the government will put a portion of the $1,000 into your account
• If the beneficiary’s net annual income is above $49,020, you will not receive the bond for this year

If you’ve been approved for the DTC in prior years, you can catch up on missed grants. This catching up is called carry forward. 

To ensure you don’t over contribute, and that you get the best grant matching possible for the dollars you do contribute, we recommend chatting with an RDSP expert like Bobby Vu

The RDSP is a long term savings and investment account. However, more often than not, clients forget to use it that way and miss out on significant growth opportunities

Once the account is opened and you’ve taken care of the grants, bonds, and carry forward, don’t forget to choose where the money gets invested! If you’d like to speak to an RDSP expert like Bobby Vu who can help you take care of this