Government grants and bonds
There are two types of government incentives available through RDSPs. The Canada Disability Savings Grant can add an annual amount of $3,500 up to a lifetime maximum of $70,000 to an RDSP. The Canada Disability Savings Bond can add up to an additional $1,000 annually to an RDSP to a lifetime maximum of $20,000. How much you are eligible to receive in grants and bonds will depend on the family income of:
the beneficiary (and spouse, if applicable), beginning in the calendar year the beneficiary reaches age 19.
the beneficiary’s family, up to and including the year in which the beneficiary reaches age 18.
Plan contributions to maximize grants and bonds
Grants and bonds are only available until the end of the calendar year in which the beneficiary reaches age 49, so plan your contributions to maximize these incentives. Don’t worry if you are late in setting up your RDSP or miss making a contribution. Beginning in 2008 and for a maximum of 10 years, unused grants and bonds are carried forward, giving you the opportunity to catch up by contributing more than $3,500 a year. Note that when catching up, the maximum payable in any one year is $10,500 for grants and $11,000 for bonds.
No additional forms need to be filled out. You will receive past grants and bonds as long as you were eligible for the Disability Tax Credit in the years for which you intend to catch up and your tax returns were filed for the two years prior to each year you intend to receive past grants/bonds. You need only contribute the correct amount to receive all of the grants/bonds to which you are entitled.
RDSP investment options
All our BMO Mutual Funds are available to be held inside your RDSP account with the exception of any funds denominated in U.S. Dollars.