Example - How to carry forward unused grant and bond entitlements

Example

Let us take Roger for example:

  • He is a person with a disability.
  • His income has been less than $15,000 each year since 2007.
  • He has been eligible for the disability tax credit (DTC) each year since 2007.
  • He is not, and has never been, a holder or beneficiary of an RDSP.
  • He has reached the age of majority and is contractually competent to enter into a plan.

In August 2017, Roger opens an RDSP. Although opened in 2017, Roger’s plan has accumulated grant and bond entitlements over the past 10 years, going back to 2008 when RDSPs became available.

The following is a breakdown of Roger’s accumulated grant and bond entitlements.

  • $1,500 in grant entitlements per year at the 300% matching rate ($1,500 x 10 years for a total of $15,000);
  • $2,000 in grant entitlements per year at the 200% rate ($2,000 x 10 years for a total of $20,000);
  • $1,000 in bond entitlements per year ($1,000 x 10 years for a total of $10,000).

Upon application for his bond, his RDSP will receive $10,000 in accumulated bond entitlements.

After the RDSP is opened, with Roger’s written consent, his family contributes $800 to his RDSP in October 2017, for which his RDSP receives $2,400 ($800 × 300%) as a grant.

Roger carries forward $12,600 ($15,000 – $2,400) in unused grant entitlement at the 300% rate and still carries $20,000 in unused grant entitlement at the 200% rate.

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