Government Grants for Disability Saving Plans Can be Very Lucrative

The Canada Disability Savings Grant can add significantly to the pensions set up for disabled individuals through the Registered Disability Savings Plan (RDSP).

If family net income is less than $87,123 for 2013, the grants can be up to triple the contributions made. For higher-income families, the grants can be as high as the contributions themselves.

For disabled dependants under age 19, “family income” means their parent’s income. For those over 18, “family income” means the income of the individual and their spouse.

The maximum grant is $3,500 per year ($1,000 for higher-income families) and is earned if the contribution is at least $1,000. In addition, the Canada Disability Savings Bond of up to $1,000 is available if family income is less than $43,561 (for 2013).

RDSPs were first available for 2008. For those who missed earning the grants and bonds in 2008 to 2012, they can be claimed by making a contribution this year. The maximum “catch-up” for grants is $10,500 per year (requires a contribution of $4,500). For bonds the maximum “catch-up” is $5,000 for contributions made in 2013.