Each year, we receive a Grant Entitlement Statement for my son’s RDSP. This year is no different, but things will change next year.
Estimated reading time: 2 minutes
RDSP Grant Entitlement 2023
As you can see, this is an essential piece of information. I now know that in 2023, I can deposit $1000 in my son’s RDSP, which will be matched with $1000 in grants.
This amount should increase now that my son is 19, as the income they will use to determine the grant will be his income instead of our household income (this should come into effect next year). At 19, his grants should be much higher due to his estimated payment (based on his income from age 17). (Age is 19, thanks to Ron Malis for correction).
My son must now re-qualify for his Disability Tax Credit (this is due to his DTC expiring at that age). This is what we learned from the last time he had to re-qualify. The rules have changed if he should not get a DTC right away.
This also means my son no longer qualifies for provincial help besides the ODSP. Am I worried about his future? Every day.
Previous Posts on Grant Entitlements
The RDSP recipient will receive an update every year, which outlines how much in Bonds and Grants they will receive every year.
No, you must have a DTC, allowing you to open an RDSP.
No, the ODSP does not rely on the DTC.
Hi,
Appreciate your site and all the information you have shared with people who have an RDSP.
We do have one question we have not been able to find an answer for on your site or elsewhere. We realize you’re not yet at the withdrawal phase but figured you might have access to this information.
When LDAP withdrawals are made from an RDSP, the “growth” portion is of course taxable. However, we can’t find seem to find out if all of that “growth” withdrawal regardless of type is included as/taxed as “ordinary income” at the tax rate of the beneficiary.
ie: are capital gains made in the plan then taxed as income on withdrawal ? Are qualified dividends received from public companies also taxed as income ?
This of course affects whether or not the plan is worthwhile in the long run from a taxation point of view (especially for people who never qualified for bonds/grants if they started at a late age)
Cheers.
I am not a licensed Tax Dude, so this is only a guess, but I would assume all growth is taxed no matter where the principal (principle?) came from.
Given the Tax folk are still on strike, it may take a while to find this one out. Post back when you get a real answer.