FINANCIAL MATTERS

The matching percentage of the Canada Disability Savings Grant will depend on the beneficiary’s adjusted family net income. For 2023, the income threshold was $106,717 or less.

Here’s how the RDSP grant works:

Matching grant

Beneficiary with adjusted family net income of $106,717 or less:

Maximum annual grant

Receives $3 for every $1 contributed of the first $500 $1,500

Receives $2 for every $1 contributed of the next $1,000

Beneficiary with adjusted family net income over $106,717:

Matching grant Maximum annual grant

Receives $1 for every $1 contributed of the first $1,000

The Canada Disability Savings Bond is an amount paid directly into the RDSP of beneficiaries from low-income households The bond is worth up to $1,000 per year; no contributions are needed to receive the bond, and the lifetime limit of the bond is $20,000.

If the beneficiary earns $34,863 or less, they’ll receive a bond of $1,000 annually in their RDSP. If they earn between $34,863 and $53,359, they’ll receive a portion of the $1,000 bond as per the Canada Disability Savings Act (these amounts are for 2023) If they earn over $53,359, they’ll receive no bond at all.

If the beneficiary is under 18, their bonds are calculated using their parents’ or guardians’ combined income. Once the beneficiary reaches 18, they need to file personal tax returns to continue receiving the RDSP bond Given that no contributions are needed to receive the Canada Disability Savings Bond, it can be hugely beneficial for disabled people on a low income

How to open an RDSP account

A Gaudet Group Private Wealth Management Advisor can help you open a Registered Disability Savings Plan for yourself or your dependent. They’ll be able to recommend the most impactful mix of investments to include within the RDSP, according to the timeframe involved and your risk tolerance level, and help you maximize contributions from the Canada Disability Savings Grant. They’ll also ensure that any contributions to the RDSP fit in with your overall financial plan, in the most efficient way possible. Schedule an appointment with your advisor today to find out if you or your family member might benefit from opening an RDSP If you don’t have an Gaudet Group Private Wealth Management Advisor, reach out today!

Written and published by IG Wealth Management as a general source of information only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice. Seek advice on your specific circumstances from an IG Wealth Management Consultant.

Jacob Gaudet is an Associate Consultant on the wealth advisory team Gaudet Group Private Wealth Management. He helps clients get more out of their money, so they can get more out of life. Jacob specializes in six key areas: Investment, Retirement, Estate, Tax, and Insurance, and Mortgage Planning. With more than 60 years of combined experience, Gaudet Group Private Wealth Management is committed to making clients’ interests their top priority. Do you have questions you’d like Jacob to Answer? Email him at jacob.gaudet@igpwm.ca or check out his website at GaudetGroup.ca!

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