Chapter 4. RDSP Payments

4.1.1 Advantage tax

This tax is governed by section 207.05 of the Income Tax Act (ITA). The tax is equal to the amount of the advantage. It is paid by the RDSP holder unless the advantage is extended by the RDSP issuer. In this case the tax is payable by the issuer. This tax does not include an amount that has been waived, cancelled, or refunded. This tax does not include any amount that was already included in the non-taxable portion of a lump sum DAP in the current year or a previous year. This lump sum DAP could have originated from the plan or a prior RDSP held by the holder for the beneficiary.

4.1.2 Annuity

A contract in which an entity agrees to make several payments over a set period of time.

4.1.3 Assistance holdback amount (AHA)

The AHA is made up of all the Canada Disability Savings Grant (CDSG) and Canada Disability Savings Bond (CDSB) that have been paid into the RDSP within a 10-calendar year period for a beneficiary by the Government of Canada (less any amounts previously repaid).

4.1.4 DAP

It's in relation to a disability savings plan of a beneficiary, means any payment made from the plan to the beneficiary or to the beneficiary's estate.

4.1.5 Fair market value (FMV)

The value of the funds in the RDSP.

4.1.6 LDAP

A disability savings plan of a beneficiary means DAP that are identified under the terms of the plan as LDAP and that, after they begin to be paid, are payable at least annually until the earlier of the day on which the beneficiary dies and the day on which the plan is terminated.

4.1.7 Non-primarily government assisted plan (non-PGAP)

When the total amount of private contributions are greater than or equal to the total amount of government contributions at the beginning of a calendar year. This includes amounts that may have been withdrawn, repaid, or lost due to a market fluctuation.

4.1.8 Primarily government assisted plan (PGAP)

When the total amount of government contributions are greater than the total amount of private contributions at the beginning of a calendar year. This includes amounts that may have been withdrawn, repaid, or lost due to a market fluctuation.

4.1.9 Specified maximum amount

For a calendar year in respect of a disability savings plan, means the amount that is the greater of:

• the LDAP formula result
• 10% of the FMV (the FMV amount excludes locked in‑ annuity payments) plus:
  • the total of all periodic payments paid to the trust from a locked in annuity during the year
  • if the trust disposed of the right to such locked in annuity payments, an estimate of the payments that the trust would have paid in the year

4.1.10 Specified year

A specified year begins when the issuer receives the medical certificate attesting that a beneficiary is not likely to survive beyond 5 years, and continues for:

• each of the 5 years following the date of the attestation signed by a medical doctor or nurse practitioner if the beneficiary has an RDSP in a specified year
• each subsequent year if the beneficiary has a Specified Disability Savings Plan (SDSP)

Note: These 5 years are reduced if the medical certificate is not given to the issuer in the first year.

A specified year will exclude any calendar year prior to the one in which a medical certificate attesting the beneficiary's shortened life expectancy is provided to the issuer.

For example: A medical doctor or nurse practitioner signs the attestation in 2022, but the issuer does not receive the attestation until 2024. In this case 2022 and 2023 are not specified years.

4.2.1 LDAP

LDAPs are payments which, once started, are payable at least annually until either the plan is terminated, or the beneficiary dies.

LDAPs must begin no later than the end of the calendar year in which the beneficiary turns 60.

For example: John turns 60 years old on August 4, 2034. LDAPs must begin no later than December 31, 2034.

If the beneficiary is 60 years of age or older in the year the plan is established as a result of an RDSP transfer, the new issuer must honour the payment commitments of the prior plan. The new issuer must determine how much (if any) LDAP was paid in the year from the prior plan. The issuer must ensure that any payments that should have been made from the prior plan are paid to the beneficiary under the new plan. The issuer must also ensure that the total of payments made from the prior plan plus the payments from the new plan meet the minimum and maximum payment rules for the year.

4.2.2 Who can request a lump sum DAP or an LDAP

A holder can request a lump sum DAP or an LDAP at any time within the maximum limits. However, in a year when the plan is a PGAP, a beneficiary who is 27 to 58 years of age (inclusively), can request lump sum DAPs and LDAPs without the holder's consent, up to the specified maximum amount. At any other time, holder consent is required.

4.3.1 Payments during specified years

When a medical doctor or nurse practitioner certifies, in writing, that the beneficiary's state of health is such that they have a life expectancy of 5 years or less, the beneficiary is considered to have a shortened life expectancy for the purpose of the RDSP.

A specified year starts when the issuer receives the written attestation. However, the specified year duration starts on the date of the attestation.

For example: The doctor or nurse practitioner signs the attestation in 2015, but the issuer does not receive the attestation until 2016. In this case, 2015 is not a specified year. Although the issuer received the attestation in 2016, the specified year duration will nonetheless end in 2020 (5 years from the date of the attestation).

In this case, the RDSP holder can choose one of the following options:

• keep the plan as an RDSP in a specified year
• designate the plan as an SDSP

4.3.2 Payment from an RDSP in a specified year

If the holder chooses to keep the plan as an RDSP in a specified year, the beneficiary can receive a payment of any amount.

For example: They can receive all the funds in the RDSP in a lump sum, or the funds may be spread over the remaining specified year period. There is no yearly maximum limit for payments, but the AHA (or the proportional repayment rule) still applies.

4.3.3 Payment from an SDSP

If the holder chooses to designate the plan as an SDSP by making an SDSP election due to a shortened life expectancy, they can withdraw a portion of the plan's assets without having to repay the AHA or the proportional repayment amount.

Payments must start no later than the year after the year the RDSP is designated as an SDSP.

For example: An RDSP is designated as an SDSP on March 25, 2021. Payments must begin no later than December 31, 2022.

The total yearly amount of payments from an SDSP must be at least equal to the legislated formula result, ITA 146.4(1). This requirement does not apply if it is the first year of the SDSP's existence. Normally the maximum amount that the beneficiary can receive in the year is a taxable amount of $10,000 and its associated contribution portion. However, if the legislative formula results in a taxable amount that is greater than $10,000, there is no maximum payment amount for that year.

In addition, the holder will not have to repay the AHA or the proportional repayment amount.

4.4.1 Repayment order

The issuer must repay grants and bonds in the order in which they were paid into the plan. They must pay from the oldest to the newest during the AHA period preceding the payment.

For example: A beneficiary opened an RDSP in 2008. In 2014, they withdraw $2,500. The beneficiary must repay an amount of $7,500. This represents a proportional repayment of $3 for each $1 withdrawn.

Solution: Repayment of $2,500 x 3 ꞊ $7,500

Based on the payment order in table 6, the amounts paid from 2008 to 2011 must be fully repaid. Plus, an amount of $1,000 paid in 2012, for a total of $7,500.

4.4.2 Overlapping proportional repayment and AHA

On occasion, an AHA trigger event may occur that includes a period in which a proportional repayment amount has already been repaid to the Government of Canada. The following example shows how the AHA will be calculated considering this previous grant and bond repayment.

Note: A trigger event can occur when a payment is made. It can also happen if the RDSP is terminated. Another trigger event is when the RDSP is no longer compliant with the ITA. Additionally, a trigger event occurs if the beneficiary dies.

For example: Since they opened their RDSP in 2008, the beneficiary has received the maximum grant and bond payable every year. In 2019, they request a lump sum DAP in the amount of $2,500. Since the 3 for 1 proportional repayment amount ($7,500) is less than the AHA ($45,000), $7,500 is repaid to the Government of Canada.

Upon the beneficiary's death in 2020, the AHA must be repaid to the government. Given that this new AHA overlaps the previous repayment amount, that repayment amount will have to be subtracted from the new AHA period total. You cannot repay an amount that has already been repaid.

$45,000 - (repaid grant & bond of $3,000) = $42,000

Solution: Therefore, the AHA to be repaid to the Government of Canada upon the beneficiary's death will be $42,000.

4.5.1 Lump sum DAPs and LDAPs

Lump sum DAPs and LDAPs includes:

• education savings rollovers
• contributions
• earnings
• grant
• bond
• retirement savings rollovers
• payments from designated provincial programs

In any lump sum DAP or LDAP, there are taxable and non-taxable portions.

4.5.2 Taxable portion

Taxable portion includes:

• grants
• bonds
• earnings
• payments from designated provincial programs
• rollover of retirement savings proceeds
• rollover of education savings

4.5.3 Non-taxable portion

Contributions are the non-taxable portion.

Note: In the case of a significant plan loss, grant and bond will count as non-taxable amounts.

If a payment is made after the beneficiary's death, the taxable portion of the payment must be included in the income of the beneficiary's estate in the year in which the payment was made.

4.7.1 RDSP in a regular year PGAP

If the plan is an RDSP in a regular year PGAP, you must calculate the following formula results:

• non-taxable portion of lump sum DAP/LDAP formula result refer to section 4.5.3 Non-taxable portion
• grant portion of lump sum DAP/LDAP formula result refer to section 4.8.3 Grant portion of a lump sum DAP/LDAP
• bond portion of lump sum DAP/LDAP formula result refer to section 4.8.4 Bond portion of a lump sum DAP/LDAP
• earnings portion of lump sum DAP/LDAP formula result refer to section 4.8.5 Earnings portion of a lump sum DAP/LDAP
• specified maximum amount refer to section 4.8.6 Specified maximum amount

These results will be used for reporting or to determine the correct minimum and maximum payment requirements. For more on payment requirements information, refer to Chapter 14. Repaying the grant and bond.

4.7.2 All other plans

If the plan is an RDSP in a regular year non-PGAP, or an RDSP in a specified year or an SDSP you must calculate the following formula results:

• LDAP formula result refers to section 4.8.1 LDAP legislated formula
• non-taxable portion of lump sum DAP/LDAP formula result refer to section 4.5.3 Non-taxable portion
• grant portion of lump sum DAP/LDAP formula result refer to section 4.8.3 Grant portion of a lump sum DAP/LDAP
• bond portion of lump sum DAP/LDAP formula result refer to section 4.8.4 Bond portion of a lump sum DAP/LDAP
• earnings portion of lump sum DAP/LDAP formula result refer to section 4.8.5 Earnings portion of a lump sum DAP/LDAP

These results will be used for reporting or to determine the correct minimum and maximum payment requirements.

4.8.1 LDAP legislated formula

To calculate the minimum and maximum payment requirements, the following formula is applied. For more information refer to paragraph ITA 146.4(1).

A ÷ (B + 3 - C) + D

Where:

• "A" is the FMV of the property held in the plan on January 1 of the calendar year (excluding the value of locked in annuity contracts held by the plan trust)
• "B" is the greater of 80 and the age of the beneficiary on January 1 of the calendar year
• "C" is the age of the beneficiary on January 1 of the calendar year
• "D" is the total of all periodic payments paid to the trust from a locked in annuity during the calendar year or if the trust disposed of the right to such annuity payments, it is an estimate of the payments that the trust would have paid in the calendar year

The result of this formula is used to determine the minimum and maximum payment requirements for a calendar year.

This formula results only needs to be calculated once a year.

4.8.2 Non-taxable portion of a lump sum DAP/LDAP

To calculate the non-taxable portion of a lump sum DAP/LDAP, the LDAP legislative formula result must already have been determined refer to section 4.8.1 LDAP legislated formula to ensure that the limits are not exceeded. It will not be used in the ensuing calculation unless the amount of the payment is equal to the result of the formula.

The non-taxable portion of a lump sum DAP/LDAP is the lesser of:

• the lump sum DAP/LDAP
• the amount determined by the formula

A x B ÷ C + D

Where:

• if this is a lump sum DAP request, "A" is the amount of the lump sum DAP request:
  • if it's a LDAP request, "A" is always the amount of the LDAP request
• "B" is the contributions made to the RDSP that have not already been used to determine the non-taxable portion of previous lump sum DAPs/LDAPs:
  • do not include variable "D" when determining the non-taxable portion of previous lump sum DAPs/LDAPs
• "C" is the result of the AHA being subtracted from the FMV (at the time immediately before the payment):
  • if this amount is negative, no payment can be made
• "D" is the amount of advantage tax that the RDSP holder pays in respect of the plan or in respect of a prior RDSP for the beneficiary that was held by the holder

4.8.3 Grant portion of a lump sum DAP/LDAP

To calculate the grant portion:

A x B ÷ C

Where:

• if this is a lump sum DAP request, "A" is the amount of the lump sum DAP request:
  • if it's a LDAP request, "A" is always the amount of the LDAP request
• "B" is the amount of grant in the RDSP that is over 10 years old, thus not part of the AHA
• "C" is the result of the AHA being subtracted from the FMV (at the time immediately before the payment):
  • if this amount is negative, no payment can be made

4.8.4 Bond portion of a lump sum DAP/LDAP

To calculate the bond portion:

A x B ÷ C

Where:

• if this is a lump sum DAP request, "A" is the amount of the lump sum DAP request:
  • if it's a LDAP request, "A" is always the amount of the LDAP request
• "B" is the amount of bond in the RDSP that is over 10 years old, thus not part of the AHA
• "C" is the result of the AHA being subtracted from the FMV (at the time immediately before the payment):
  • if this amount is negative, no payment can be made

4.8.5 Earnings portion of a lump sum DAP/LDAP

To calculate the earnings portion:

• subtract the formula results of the non-taxable (contributions), grant and bond portions from the amount of the lump sum DAP/LDAP request
• lump sum DAP/LDAP - non-taxable portion - grant portion - bond portion
• "lump sum DAP/LDAP" is the amount of the lump sum DAP/LDAP request
• "non-taxable portion" is the amount calculated in section 4.5.3 Non-taxable portion
• "grant portion" is the amount calculated in section 4.8.3 Grant portion of a lump sum DAP/LDAP
• "bond portion" is the amount calculated in section 4.8.4 Bond portion of a lump sum DAP/LDAP

4.8.6 Specified maximum amount

The specified maximum amount is the greater of the LDAP legislated formula result refer to section 4.8.1 LDAP legislated formula and 10% of the FMV (the FMV amount excludes locked in annuity payments) plus the total of all periodic payments paid to the trust from a locked-in annuity during the year. Or, if the trust disposed of the right to such annuity payments it is an estimate of the payments that the trust would have paid in the year.

Note: Greater of either, the LDAP formula result and 10% of the FMV (excludes locked-in annuity payments) plus any locked-in annuity payments.

"LDAP formula result" is the amount calculated in section 4.8.1 LDAP legislated formula.

"FMV" is the FMV of the property held in the plan on January 1 of the calendar year.

4.9.1 LDAP: RDSP regular year, non-PGAP, 60 years old or over

Scenario:

Linda is the sole provider for their spouse, Paul, who was 40 years old in 2014. Starting in 2014, Linda contributes $10,000 annually to Paul's RDSP for the next 20 years. The grant matching rate has remained constant at 100% throughout the years. Paul is not eligible for the bond.

After 20 years, the FMV of the RDSP on January 1, 2034, is $261,448. Paul will also turn 60 years old in 2034. No lump sum DAPs were made from the RDSP since it was set up.

The account balance is as follows:

• $200,000 in contributions (20 payments of $10,000 from 2014 to 2033 inclusively)
• $16,000 in grants (16 payments of $1,000 from 2008 to 2023 inclusively)
• no bond
• $45,448 in earnings
• $261,448 in FMV (as of January 1, 2034)
• no AHA
• no annuity
• no previous lump sum DAP has been paid
• no previous AHA has been repaid

9 steps:

1. RDSP in a regular year
2. Non-PGAP
3. LDAP formula, non-taxable, grant, bond and earning parts of the LDAP
4. Minimum and maximum = formula result
5. FMV on January1 is $261,448
6. Age on December 31 is 60 or over and age on January 1 is 59 years old
7. Grant is $16,000 and bond is $0
8. No AHA
9. Begin calculations

Rules: Since Paul turns 60 in 2034, he must receive an LDAP amount that is equal to the LDAP formula result. A onetime yearly LDAP is requested on January 1, 2034.

Calculations: To determine the required amount that Paul must receive in 2034, you must calculate the LDAP formula result.

In 2034, the LDAP that Paul will receive is $10,893.67.

A ÷ (B + 3 - C) + D

$261,448 ÷ (80 + 3 − 59) + $0

$261,448 ÷ 24 = $10,893.67

Where:

• "A" is the FMV on January 1 less any locked in annuities
• "B" is greater of 80 and the age of the beneficiary on January 1
• "C" is the beneficiary's age on January 1
• "D" is the locked in annuities amount

Note: For more information on definitions, refer to section 4.8.1 LDAP legislated formula.

4.9.2 2 DAPs: RDSP regular year, PGAP, 59 years old and under

This scenario will illustrate how a lump sum DAP will affect the notional balances of an RDSP, which in turn will impact any future lump sum DAP request.

It will also explain how to calculate the LDAP formula to first determine the maximum lump sum DAP request allowed for the year, as well as how to apply the formulas to determine the proportions applicable to the lump sum DAP.

Scenario 1:

Judy and Richard are the legal parents, and joint holders of their 12-year-old child Lisa's RDSP. Every year since opening the RDSP in 2008, Judy and Richard contribute $1,500 to their child plan during the first week of January. The grant matching rate has remained constant at 300% and 200%. A $1,000 bond was also paid into Lisa's RDSP from 2008 to 2013.

Lisa is 12 years of age as of January 1, 2020. A $2,000 lump sum DAP is requested in March 2020. A second lump sum DAP for the amount of $4,200 is requested in August 2020.

The account balance as of March 2020 is as follows:

• $45,500 in grant (13 payments of $3,500 from 2008 to 2020 inclusively)
• $6,000 in bond (6 payments of $1,000 from 2008 to 2013 inclusively)
• $19,500 in contributions (13 payments of $1,500 from 2008 to 2020 inclusively)
• $75,260 in FMV (as of March 2020)
• $4,260 in earnings
• $38,000 in AHA ($35,000 in grant and $3,000 in bond from 2011 to 2020 inclusively)
• no annuities
• no previous lump sum DAP has been paid
• no previous AHA has been repaid

9 steps:

1. RDSP in a regular year
2. PGAP
3. Specified maximum amount, non-taxable, grant, bond, and earnings part of the lump sum DAP
4. No minimum amount and the maximum amount is the specified maximum amount
5. FMV on January 1 is $75,260 and the FMV on the lump sum DAP date is $75,260
6. Age on January 1 is 12 years old and age on December 31 is 59 years and under
7. Grant is $10,500 and bond is $3,000
8. The AHA is $38,000
9. Begin calculations

Rules: Because of Lisa's age, the maximum lump sum DAP amount that they can receive in the calendar year is limited to the specified maximum amount. There is no minimum amount regarding the lump sum DAP.

Calculations: To determine the lump sum DAP maximum amount allowed, you must determine the greater amount between: (a) the LDAP formula result and (b) 10% of the FMV + annuities (if applicable).

1. The LDAP formula result:
   • A ÷ (B + 3 - C) + D
   • $75,260 ÷ (80 + 3 − 12) + $0
   • $75,260 ÷ 71 = $1,060
2. FMV as of January 1, 2020
   • A x 10% + D
   • $75,260 x 10% + $0 = $7,526

The maximum lump sum DAP amount allowed in 2020 is $7,526.

Where:

• "A" is the FMV on January 1 less any locked in annuities
• "B" is greater of 80 and the age of the beneficiary on January 1
• "C" is the beneficiary's age on January 1
• "D" is the locked in annuities amount

Note: For detailed definitions, refer to section 4.8.1 LDAP legislated formula.

Calculations for the first lump sum DAP request of $2,000 in March. Since the lump sum DAP request is below the yearly maximum allowed of $7,526, it would therefore be authorized.

When calculating the non-taxable and taxable amount formulas, you must use the FMV amount immediately before the lump sum DAP. FMV for this plan as of March 2020 has remained stable at $75,260.

4.9.3 LDAP and lump sum DAP: RDSP regular year, non-PGAP, 59 or under

Scenario 1:

From 2008 to 2026 inclusively, Kevin contributed $4,000 a year to their RDSP. The grant matching rates remained constant at 300% and 200%. A $1,000 bond was also paid into Kevin's RDSP from 2014 to 2017 inclusively as well as a one‑time rollover of $12,000 in 2022.

On January 1, 2027, 47-year‑old Kevin received an LDAP amount for the year.

Also, in July of that same year, Kevin requested a lump sum DAP of $12,000.

The account balance as of January 1, 2027, is as follows:

• $66,500 in grant (19 payments of $3,500 from 2008 to 2026 inclusively)
• $4,000 in bond (4 payments of $1,000 from 2014 to 2017 inclusively)
• $76,000 in contributions (19 payments of $4,000 from 2008 to 2026 inclusively)
• $168,010 in FMV (on January 1, 2027)
• $21,510 in earnings (includes a $12,000 rollover)
• $36,000 in AHA ($35,000 in grant and $1,000 in bond from 2017 to 2026 inclusively)
• no annuities
• no previous lump sum DAP has been paid
• no previous AHA has been repaid

9 steps:

1. RDSP in a regular year
2. Non-PGAP
3. LDAP formula, non-taxable, grant, bond, and earnings portions of the LDAP
4. Minimum amount $1 and the maximum amount is the LDAP formula result
5. FMV on January 1 is $168,010
6. Age on January 1 is 47 years old and age on December 31 is 59 years and under
7. Grant is $31,500 and bond is $3,000
8. The AHA is $36,000
9. Begin calculations

Rules: The maximum LDAP amount that Kevin can receive in the year is the result of the LDAP formula.

The minimum LDAP that Kevin must receive in the year is $1.

Calculations: To determine the maximum LDAP amount allowed, you must apply the LDAP formula.

4.9.4 LDAP SDSP

Scenario 1:

From 2010 to 2029 inclusively, $3,500 in grant and $1,000 in bond have been deposited into Nancy's RDSP each year. In December 2035, 39-year-old Nancy had their RDSP designated as an SDSP, so they begin making withdrawals every 2 months starting January 1, 2036.

Nancy wants to withdraw the maximum amount of funds possible from their SDSP.

The account balance as of January 1, 2036, is as follows:

• $70,000 in grant (20 payments of $3,500 from 2010 to 2029 inclusively)
• $20,000 in bond (20 payments of $1,000 from 2010 to 2029 inclusively)
• $30,000 in contributions (20 payments of $1,500 from 2010 to 2029 inclusively)
• $136,800 in FMV (on January 1, 2036)
• $16,800 in earnings
• no AHA (there is no AHA in an SDSP)
• no annuities
• no previous lump sum DAP has been paid
• no previous AHA has been repaid

9 steps:

1. SDSP
2. Not applicable in an SDSP
3. LDAP formula, non-taxable, grant, bond, and earnings portions of the LDAP
4. Minimum amount is equal to the formula result and the maximum amount is $10,000 in taxable amount or no maximum if formula results in taxable amount greater than $10,000
5. FMV on January 1, 2036, is $136,800
6. Age on January 1 is 39 years old and age on December 31 is 59 years and under
7. Grant is $70,000 and bond is $20,000
8. No AHA
9. Begin calculations

Rules: The maximum amount will either be $10,000 in taxable amount, or if the formula results in a taxable amount that is greater than $10,000, there will be no maximum amount. The minimum is the formula result.

Calculations: In 2036, the LDAP formula results is:

A ÷ (B + 3 - C) + D

$136,800 ÷ (80 + 3 − 39) + $0

$136,800 ÷ 44 + $0 = $3,109.09

Where:

• "A" is the FMV on January 1 less any locked-in annuities
• "B" is greater of 80 and the age of the beneficiary on January 1
• "C" is the beneficiary's age on January 1
• "D" is the locked in annuities amount

Note: For more detailed definitions, refer to section 4.8.1 LDAP legislate formula.

4.10.1 Information template

As a reference use this tool to help determine the information needed to calculate the lump sum DAP or LDAP.

1. What is the plan type?
   • RDSP regular year
   • RDSP specified year
   • SDSP
2. Is it a PGAP or non-PGAP?
   • PGAP
   • Non-PGAP
3. What are the 5 required formula results to be calculated?
   • Those from section 4.7.1 RDSP in a regular year PGAP
     1. specified maximum amount or LDAP formula
     2. non-taxable portion of lump sum DAP /LDAP
     3. grant portion of lump sum DAP/LDAP
     4. bond portion of lump sum DAP/LDAP
     5. earnings portion of lump sum DAP/LDAP (including rollovers)
4. What are the applicable minimum and maximum payment rules?
   • Minimum:
   • Maximum:
5. What is the FMV of the property held in the plan on January 1?
   • On the date of the payment
   • What is the FMV minus the AHA amount:
     • if negative result, no payment can be made:
       • January 1
       • payment date
       • FMV - AHA = $
     • report this amount as variable "C" in the calculation of portions
6. How old is the beneficiary on January 1 and December 31 of the current year?
   • January 1:
   • December 31:
     • 59 or under
     • 60 or over
7. What is the AHA as of the current date?
   • AHA: $
8. What are the grant and the bond amounts that are older than 10 years (not part of the AHA)?
   • Grant: $
   • Bond: $
9. Begin the calculations

4.10.2 Calculation template

Refer to Chapter 3 RDSP Registered Disability Savings Plan section 3.11 Investments, fees, losses, and bankruptcy to calculate the following.

LDAP formula: A ÷ (B + 3 - C) + D =

Non-taxable portion of the lump sum DAP/LDAP: A X B ÷ C =

Grant portion of the lump sum DAP/LDAP: A X B ÷ C =

Bond portion of the lump sum DAP/LDAP: A X B ÷ C =

Earnings portion of the lump sum DAP/LDAP: The amount of the lump sum DAP/LDAP request minus the result of the non-taxable portion of the lump sum DAP/LDAP minus the result of the grant portion of the lump sum DAP/LDAP minus the result of the bond portion of the lump sum DAP/LDAP =

Specified maximum amount (if applicable) greater of either the:

• (LDAP formula result) =
• and (10% of FMV on January 1 (excludes locked in annuity payments) + any locked-in annuity payments) =

4.10.3 Formula and minimum and maximum reference table