Notice # 366 - Registered Disability Savings Plan (RDSP) income matching rates for 2020
Official Title: Notice # 366 - Registered Disability Savings Plan (RDSP) income matching rates for 2020
Disclaimer: RDSP issuers
The information contained on this page is technical in nature and is intended for Registered Disability Savings Plan (RDSP), Canada Disability Savings Grant (CDSG) and Canada Disability Savings Bond (CDSB) 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
Information Bulletin
- Number:
- CDSP/PCEI-2019/20-002-366
- Date:
- December 11, 2019
- Subject:
- RDSP income matching rates for 2020
Previous bulletin
This information bulletin updates the information bulletin PCEI/CDSP-2018/19-002-332 dated December 11, 2018.
Purpose
The purpose of this information bulletin is to inform Issuers/Agents of the new RDSP income matching rates for 2020.
2019 Income matching rates
The Canada Revenue Agency has published the 2020 indexation adjustments for personal income tax and benefit amounts. Based on these published amounts, the income matching rates for Registered Disability Savings Plans (RDSP) for 2020 are as follows:
| Amount | Income level |
|---|---|
| $31,711 | “Phase out Income”: The income level above which the annual amount of Canada Disability Savings bond payable begins to decrease. |
| $48,535 | “First threshold”: The income level that, when reached or exceeded, the annual amount of Canada Disability Savings bond payable is nil. |
| $97,069 | “Second threshold”: The income level below which or equal to, the matching grant in the 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. |
These income levels will be used when processing all transactions dated January 1, 2020 or later.
Current and previous years
The following table lists the threshold matching amounts for the current year and the previous 10 years, where carry forward payments of the Canada Disability Savings grant and bond may be made:
| Year | Phase out Income | First threshold | Second threshold |
|---|---|---|---|
| 2020 | $31,711 | $48,535 | $97,069 |
| 2019 | $31,120 | $47,630 | $95,259 |
| 2018 | $30,450 | $46,605 | $93,208 |
| 2017 | $30,000 | $45,916 | $91,831 |
| 2016 | $26,364 | $45,282 | $90,563 |
| 2015 | $26,021 | $44,701 | $89,401 |
| 2014 | $25,584 | $43,953 | $87,907 |
| 2013 | $25,356 | $43,561 | $87,123 |
| 2012 | $24,863 | $42,707 | $85,414 |
| 2011 | $24,183 | $41,544 | $83,088 |
| 2010 | $23,855 | $40,970 | $81,941 |
Updated RDSP issuer resources
Due to the above changes, RDSP issuer resources will be updated on Canada.ca/RDSPresources to reflect these changes in the near future.
Contact us
For questions regarding this information bulletin, please contact us by e-mail at rdsp-reei@hrsdc-rhdcc.gc.ca or call at 1-866-204-0357. Our hours of operation are from 8 am to 5 pm Eastern Time.
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