Each year we receive an RDSP Statement of Grant Entitlement from the government. This statement tells us how much my son will receive in grants on his RDSP (for this year). There is also a statement about how much money that can be deposited in the account to receive these grants.
I have scanned the main information box that explains this.
As you can see this is an important piece of information. I now know I can deposit $1020 in my son’s RDSP (this year) and it will be matched with $1020 in grants.
The reason these amounts are so low, is currently my son is under 18 years old. Due to his age, his “net income” calculation is based on my family income. Once my son reaches age 18 the income calculation that the statement of grant entitlements is based on, will be his income only. At that time, his grants should be much higher, due to his estimated income at that age.
When he turns 18, he will also have to re-qualify for his Disability Tax Credit as well. This is what we learned from the last time he had to re-qualify.
He will get a $1000 bond each year as well when he turns 18. His Grant is $3500 if we contribute $1500 so that is very nice. He will also get the GST rebate as well as the Ontario Trillium Benefit. Make sure you start to file his income taxes when he turns 16 or 17 to make sure you don’t leave any money on the table. The RDSP people told us they go back 2 years so we had to go back and file his returns from when he was 16, even though he had no income.
Precisely, excellent comment, thank you for filling in that information.
It may be low but it’s still 100% matching money that you’ll never be able to get in the market.
I’ve received mine in the mail this week too and it’s low now on account of being married so I’m over the threshold. Still, 100% free money which I can’t argue with it!
Absolutely, if I wasn’t clear (which is possible) I will deposit the amount, get it matched, but wait to put more money in later.