Video: Registered Disability Savings Plan, Canada Disability Savings Grant, Canada Disability Savings Bond and carry forward
Transcript
Canada Disability Savings Grant
The Canada Disability Savings Grant (CDSG) is a matching grant paid into a Registered Disability Savings Plan (RDSP) by the Government of Canada.
What happens if the beneficiary's family income is less than or equal to the yearly income threshold indexed by the Canada Revenue Agency (CRA)? The first $500 in contributions will attract $1,500 in CDSG and the next $1,000 in contributions will attract $2,000 in CDSG.
If the beneficiary's family income is greater than the threshold or if no income information is available at the CRA:
- the first $1,000 in contributions will attract $1,000 in CDSG
Note: The CDSG is paid until December 31 of the calendar year in which the beneficiary turns 49 years of age.
Canada Disability Savings Bond
The Canada Disability Savings Bond (CDSB) is an amount that the Government of Canada pays into an RDSP. This helps low-and-modest income Canadians with a severe and prolonged disability and their families save for the future.
The amount is up to $1,000 each calendar year, based on the beneficiary’s family income.
No contribution is required to receive the CDSB.
Note: The CDSB is paid until December 31 of the calendar year in which the beneficiary turns 49 years of age.
Carry forward
Holders may not be able to contribute regularly to their RDSP. A carry forward provision allows individuals to access unused CDSG and CDSB entitlements from the past 10 years.
The maximum entitlements payable per year are $10,500 in CDSG and $11,000 in CDSB.
Knowledge check
Time for a knowledge check.
- The latest date a contribution made to be eligible to attract CDSG is:
- December 31 of the year the beneficiary turns 60
- December 31 of the year the beneficiary turns 49
- December 31 of the year the beneficiary turns 59
- December 31 of the year the beneficiary turns 65
-
Answer
The answer is:
- December 31 of the year the beneficiary turns 49
- What is the annual maximum CDSG entitlement, with carry forward, payable into an RDSP?
- $10,500
- $11,000
- $3,500
- $1,000
-
Answer
The answer is:
- $10,500