Page 11 - Magazine Spring 2019

06
Example:
31 years of contributions, low income family:
Your annual contribution of $1,500 = $46,500 total
CDSB of $1,000 a year to a maximum lifetime amount of $20,000 CDSG of $3,500 a year to a maximum lifetime amount of $70,000 Results in $398,891 plan total
(assuming a 5.5% rate of return over 31 years)
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• Canada Disability Saving Grants (CDSG):
• The Government deposits money into your RDSP, matching grants of 300%, 200% or 100%, depending on the amount contributed and the beneficiary’s family net income
• The maximum is $3,500 each year, with a lifetime limit of $70,000
• Family Income below: $91,831
• $3,500 maximum annual to a maximum of $70,000 lifetime (only to 49)
• First $500: 3 dollars per 1 dollar invested: maximum $1,500 annually
• Next $1,000: 2 dollars per 1 dollar invested: maximum $2,000 annually
• Family Income more than $91,831
• First $1,000: 1 dollar per 1 dollar invested: maximum $1,000 annually
Withdrawing your money:
• RDSP withdrawals must begin by the end of the year you turn age 60.
• You may withdraw funds earlier, but $3 worth of federal grants and bonds paid into the RDSP in the previous
10 years must be repaid for every $1 withdrawn.
• Withdrawals will consist of non-taxable contributions, taxable Government monies and taxable growth.
05 Carry Forward: • Up to 10 years
Termination of a RDSP:
• Loss of eligibility of the DTC
• RDSP non-compliant
• Beneficiary’s death
• Transfer to another user
• Only AHA (Grant within 10 years of withdrawals) is left in the plan (no earnings or contributions)
• The grant must be refunded to the government.
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•
•
Maximum carry forward per year: CDSG: $10,500
CDSB: $11,000
THE BEST MAGAZINE SPRING 2019 11
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