My son’s DTC was renewed for the rest of his life, two years ago now (2024), which was a relief. The system doesn’t always work well, but it did for us in this instance. We received his 2026 statement of entitlement in the mail.
Given that my son is now over the age of 18 19, how his RDSP grants and bonds are calculated changed. Now they are calculated based on his current income (not on my income). He is still a student (and I am glad we set up an RESP for him), so his income is nearly zero. As shown in his Grant Statement for this year, the numbers are higher.
Due to his diminished income, he also received a Bond this year. All this money will be taxed in his hands when he finally starts drawing from the account. The growth in the account is also subject to tax. I will set up an automatic deposit for this year; it will add up to about $1550, which is the maximum the government will match. You can contribute any amount of money to your plan at any time of the year as long as you do not exceed the lifetime maximum of $200,000. For each eligible contribution you make, you will receive the matching grant in your plan.
Always remember the RDSP is a very long-term savings plan.
My son will most likely not qualify for the ODSP, but that is not as important for now.
The income shift at 19 is a big deal. Many families see a dramatic increase in grant eligibility once the beneficiary’s income is assessed independently. If that income is low, as it often is for students and people with disabilities, the matching can increase significantly.
The RDSP is not flashy. It doesn’t trend on social media. But it may be one of the most generous government-supported savings vehicles available in Canada. The combination of grants and bonds can dramatically amplify modest contributions over time.
Previous Posts on Grant Entitlements
- In 2026 the Statement of Entitlement numbers changed dramatically.
- 2024 Statement of Grant with No DTC
- Follow on RDSP: Statement of Grant (Follow on)
- 2023 Statement of Grant Entitlement
- 2022 Statement of Grant Entitlement
- 2021 Statement of Grant Entitlement
- 2020 Statement of Grant Entitlement
- 2019 Statement of Grant Entitlement
- 2018 Grant Discussions
Related RDSP Pages
- The RDSP Page is the Overview of all articles I have written about the RDSP (including DTC and other areas).
- RDSP : Laying the Ground Work (first things first)
What needs to be done BEFORE you can apply for a Registered Disability Savings Plan? A major aspect of this is the Disability Tax Credit (DTC). Make sure you click on this page to get started. - RDSP : Working with The Account
Now that you have succeeded in getting your Disability Tax Credit (DTC) you need to open an RDSP account with a bank, but how is that done? It is not as easy as you might think. This page outlines many issues that have arisen for my family working with an RDSP account. - Disability Tax Credit Related Topics
Thanks to my RDSP and DTC work I then had to learn a great deal about the tax implications of having a disabled child. - Autism Specific Articles
Being the proud Father of a child on the Autism Spectrum, I also ended up writing a great deal about Autism specific things as well.
- RDSP : Laying the Ground Work (first things first)
DTC & RDSP FAQ
The account will no longer receive grants or bonds until the DTC is renewed.
It can take six to eight weeks, depending on how busy HSDRC and the CRA are. If you do not hear back after eight weeks, follow up with a phone call.
Nothing; your bank is creating its own weird policies about your RDSP. You’ll have to wait until your bank allows you to make deposits again.
No, as of 2019 it is specifically excluded from all bankruptcy actions.
I’m curious why you think your son wouldn’t qualify for ODSP. Generally, it is more difficult to qualify for the DTC than ODSP. Or do you think he wouldn’t satisfy ODSP’s financial eligibility criteria?
About Grant entitlement calculations the year the beneficiary turns 19, plan holders need need to understand the beneficiary’s tax return needs to be filed the year they turn 17, even if they earned zero income, because the Grant entitlement for the year the beneficiary turns 19 is based on their net taxable income from the year they turned 17. If the tax return isn’t filed, the Grant entitlement will be $1,000 instead of $3,500 and the Bond entitlement will be zero because the government won’t know the beneficiary’s income was low enough to qualify for the $3,500 Grant or $1,000 Bond.
Excellent point about the importance of submitting your child’s taxes from age 17 onward. I did that, but don’t remember if I ever wrote about it. Might be an idea!
From our cursory checking of the ODSP rules, he already has too much in his bank account to qualify. Now, having said that if we worked at it:
1) Spent his savings account on his schooling, along with his RESP
2) I started charging him rent (which isn’t a bad idea, come to think of it)
3) Read the ODSP qualifications closer
We could get him qualified, but we’ll wait on that for now. –Thx Ron