InfoCapsule: Canada Disability Savings Bond

From: Employment and Social Development Canada

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 (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

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InfoCapsule 10: Canada Disability Savings Bond
[PDF - 67 Ko]

The Canada Disability Savings Bond (bond) helps low-income and modest-income Canadians with a severe and prolonged disability and their families save for the future.

An application for the bond must be made.
No contribution is required to receive a bond.
Annual bond amounts are determined based on the beneficiary’s family income^{Footnote 1}.
The family income thresholds are indexed each year by the Canada Revenue Agency.
To receive a bond, the family income of the beneficiary must be determined. If the beneficiary is:
- 18 years of age or younger:
  - the primary caregiver, who is the person who receives the Canada Child Benefit (CCB), must file an income tax return; or
  - if a department, institution or agency responsible for the care of the beneficiary receives payments under the Children's Special Allowances Act;
- over 18 years of age:
  - the beneficiary's income tax return must be filed.

Limits

The maximum annual bond is $1,000.
The lifetime limit is $20,000.
If there are unused bond entitlements (carry forward)^{Footnote 2}, the maximum annual bond limit is $11,000.
The cut-off date to receive a bond application is December 31 of the calendar year in which the beneficiary turns 49 years old.

Eligibility criteria

Eligibility	For beneficiaries under the age of 18	For beneficiary over the age of 18
Disability Tax Credit (DTC)	The beneficiary must be eligible for the DTC when the application for bond is made.
Residency	The beneficiary must be a resident in Canada at the time of the application for the bond and immediately before the payment of the bond.
Social Insurance Number (SIN) or Business number (BN)	The SIN of the beneficiary, holder and primary caregiver are valid. The BN of the department, institution or agency maintaining the beneficiary "in care" is valid.	The SIN of the beneficiary and holder are valid. The BN of the department, institution or agency maintaining the care of the adult beneficiary is valid.

Eligibility

For beneficiaries under the age of 18

For beneficiary over the age of 18

Disability Tax Credit (DTC)

The beneficiary must be eligible for the DTC when the application for bond is made.

Residency

The beneficiary must be a resident in Canada at the time of the application for the bond and immediately before the payment of the bond.

Social Insurance Number (SIN)
or
Business number (BN)

The SIN of the beneficiary, holder and primary caregiver are valid.

The BN of the department, institution or agency maintaining the beneficiary "in care" is valid.

The SIN of the beneficiary and holder are valid.

The BN of the department, institution or agency maintaining the care of the adult beneficiary is valid.

Matching rate

Family income	Bond payment
$31,120^{Footnote 3} or less	$1,000
Greater than $31,120^{Footnote 3} but less than or equal to $47,630^{Footnote 3}	Up to $1,000 Based on a formula as identified in the Canada Disability Savings Act (CDSA): $1,000 - [$1,000 x (A-B)/(C-B)] Where: A = Family income B = $31,120 C = $47,630

Family income

Bond payment

$31,120^{Footnote 3} or less

$1,000

Greater than $31,120^{Footnote 3} but
less than or equal to
$47,630^{Footnote 3}

Up to $1,000

Based on a formula as identified in the Canada Disability Savings Act (CDSA):

$1,000 - [$1,000 x (A-B)/(C-B)]

Where:
A = Family income
B = $31,120
C = $47,630

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InfoCapsule 10: Canada Disability Savings Bond