RDSP: Maximize Disability Savings Grants & Bonds

An RDSP (Registered Disability Savings Plan) is a registered account for people with disabilities. The government provides two benefits: CDSG (Canada Disability Savings Grant, up to 300% matching) and CDSB (Canada Disability Savings Bond, up to $1,000/year for low-income earners). Together, these can add $70,000+ in grants over a lifetime, making RDSP one of Canada's most generous savings programs.

CDSG: Free Government Matching on Contributions

• Matching rates: 300% on first $500/year (= $1,500), then 200% on next $1,000 (= $2,000) = max $3,500 CDSG/year
• Lifetime limit: $70,000 total CDSG
• Age cut-off: Can't receive new CDSG after age 49
• Income phase-out: Reduced rates above ~$177,000 family income

To maximize CDSG, contribute $1,500/year to get the full $3,500 grant. This is extraordinarily generous: you invest $1,500, government adds $3,500, for $5,000 total annual growth.

CDSB: Free Money for Low-Income Beneficiaries

• Grant: Up to $1,000/year if beneficiary income is under ~$34,000
• Lifetime limit: $20,000 total CDSB
• No contribution required: CDSB is granted even with zero contributions

If the beneficiary has low income, contribute nothing and still receive up to $1,000/year CDSB. Combine CDSG + CDSB for maximum grants: $3,500 CDSG + $1,000 CDSB = $4,500/year.

RDSP Rules: DTC Requirement & 10-Year Repayment

• DTC requirement: Beneficiary must have an approved Disability Tax Credit (DTC) to open or contribute to an RDSP
• 10-year repayment rule: If RDSP is closed or beneficiary loses DTC within 10 years of receiving a grant, the grant must be repaid
• Account closure: No age limit for contributions. RDSP can remain open indefinitely.