Changes to Registered Disability Savings Plan (RDSP) Income Matching Rates

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The information contained on this page is technical in nature and is intended for Registered Disability Savings Plan (RDSP), Canada Disability Savings Grant (grant) and Canada Disability Savings Bond (bond) issuers. For general information, visit the RDSP section.

Consult this page frequently for newer versions. The following laws and regulations take precedence over information contained in InfoCapsules in the event of discrepancies:

  • Income Tax Act
  • Canada Disability Savings Act
  • Canada Disability Savings Regulations

Official Title: Changes to Registered Disability Savings Plan (RDSP) Income Matching Rates

Information Bulletin

Number:
CDSP/ PCEI -2010/11-003-029
Date:
July 9, 2010
Subject:
Notice #029 - Changes to Registered Disability Savings Plan (RDSP) Income Matching Rates

Budget 2010 has introduced new income matching rates for Registered Disability Savings Plans (RDSP). These new matching rates are retroactive to the 2009 contribution year. The governing legislation will no longer refer to "first threshold" and "second threshold" for the Canada Disability Savings Bond, and "first threshold" for the Canada Disability Savings Grant. The legislation will now use the following terminology:

"phase out income" – refers to the income level above which the annual amount of Canada Disability Savings Bond payable begins to decrease.

"first threshold" – refers to the income level that, when reached or exceeded, the annual amount of Canada Disability Savings Bond payable is nil.

"second threshold" – refers to the income level below which or equal to, the matching grant in a particular year will be 300% of the first $500 in contributions and 200% of the next $1,000 in contributions; or, above which the matching grant will be 100% of the first $1,000 in contributions.

The following table outlines the changes:

Bond Income Matching Rate
  2009 Old 2009 new 2010 old 2010 new

"phase-out income"
(formerly 1st threshold)

$21,816 $23,710 $21,947 $23,855

"first threshold"
(formerly 2nd threshold)

$38,832 $40,726 $39,065 $40,970

 

Grant Income Matching Rate
  2009 Old 2009 new 2010 old 2010 new

"second threshold"
(formerly 1st threshold)

$77,664 $81,452 $78,130 $81,941

These changes take effect immediately.

All newly reported transactions will be processed using the updated rates beginning in the July production cycle.

The Canada Disability Savings Program will be reprocessing all affected transactions that were previously processed at the old matching rates during the July production cycle.

Please note that all reprocessed transactions will receive more grant or bond as a result of these changes.

If you have any questions on reprocessing of old transactions or the new income thresholds, please email rdsp-reei@hrsdc-rhdcc.gc.ca or call 1-866-204-0357.

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