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Canada Disability Savings Bond (CDSB)

New for 2011: 10-Year Carry Forward of CDSB Entitlement

  • Beneficiaries may now qualify for past CDSB entitlement for the preceding 10 years (back to 2008, the inception of RDSPs)
  • The amount of eligible past CDSB depends on the beneficiary’s family net income in those years
  • Up to a maximum of $11,000 CDSB can be paid in a year, including the current year and previous years’ bond
  • Eligibility based on the beneficiary’s disability tax credit (DTC) status and age in those years
  • The last day a beneficiary may apply for past CDSB entitlement is December 31st the year in which the beneficiary turns 49 years of age

Lower income families may be eligible for government payments to an RDSP that can provide greater opportunities to save and invest for a disabled person’s future. The money is available without the need to make contributions to the RDSP.

Lower-income families may qualify for a lifetime maximum of $20,000 in payments from the Canada Disability Savings Bond (CDSB) program. The CDSB pays a maximum of $1,000 per year, available to families with annual income equal to or below $24,863. Those with family incomes of greater then $24,863 and less then $42,707 receive a prorated amount, based on the $1,000 maximum. Families with incomes of more than $42,707 are not eligible for the CDSB.

Before the end of the year in which the beneficiary turns 18, the family income of the beneficiary’s parents or legal guardian is used to determine bond payment amounts. In the year the beneficiary turns 19, payments are based on his or her net income (and spouse’s net income if applicable). A beneficiary may be eligible to receive bonds until the end of the year in which he or she turns 49.

Annual Family Net Income Canada Disability Savings Bond (Annually)
$24,863* or less $1,000
greater then $24,863 and less then $42,707* Prorated amount of $1,000
More than $42,707* None

For further information regarding the CDSB please refer to this website from Human Resources and Skills Development Canada.

* Income amounts shown are for 2012 based on income tax returns filed for the 2010 tax year. These income thresholds will be indexed annually by CRA.