6:56 Family Income transitions from Parent’s to the DTC Approved person (Beneficiary) in the year the Beneficiary turns Age 19, Not Age 18. This is important because if the matching rate is still at 100% and only receives matching on the first $1,000, then a $1,500 contribution could have $500 Not matched. From another perspective $3,500 of Grants is Not paid into the RDSP. Since the Family Income is from the 2nd year prior, the DTC approved person should start filing taxes for Age 17 Tax Year.
8:38 Carry Forward or capturing past Grant Entitlements. It is a common misunderstanding that 3 years of contributions or $4,500 would attract $10,500 of Grants (Max. Annual Grants ). This could be costly because some of that contribution could possibly Not get Grant matching. The Carry Forward provision allows to capture unused prior year entitlements up to a Max. 10 years (2013 since we’re in 2023) or as far as DTC is approved. ESDC will look at years where the Higher Entitlement Rates are 300% and 200% first, before lower matching rate of 100%. More specifically, they look at unused Entitlements with higher matching (300%) first, until exhausted, or the Annual Max reaches $10,500. Then they look at 200% unused Entitlements. Then 100% if any. It could take several years to capture all the Carry Forward Grants.
Family Income Threshold for 2023 Grant Entitlements is $106,717. Remember, it’s based on 2nd year prior, so they are comparing that to 2021 Family Income. The threshold is similar to the Top of the 2nd Federal Tax Bracket
Bond Entitlement for 2023 is $34,863 for the full $1,000. Between $34,863 and $53,359 there is a sliding scale when the Bond reaches $0 For prior years the ranges are less. 2013 Thresholds $25,356 and $43,561
6:56 Family Income transitions from Parent’s to the DTC Approved person (Beneficiary) in the year the Beneficiary turns Age 19, Not Age 18.
This is important because if the matching rate is still at 100% and only receives matching on the first $1,000, then a $1,500 contribution could have $500 Not matched.
From another perspective $3,500 of Grants is Not paid into the RDSP.
Since the Family Income is from the 2nd year prior, the DTC approved person should start filing taxes for Age 17 Tax Year.
8:38 Carry Forward or capturing past Grant Entitlements. It is a common misunderstanding that 3 years of contributions or $4,500 would attract $10,500 of Grants (Max. Annual Grants ).
This could be costly because some of that contribution could possibly Not get Grant matching.
The Carry Forward provision allows to capture unused prior year entitlements up to a Max. 10 years (2013 since we’re in 2023) or as far as DTC is approved.
ESDC will look at years where the Higher Entitlement Rates are 300% and 200% first, before lower matching rate of 100%.
More specifically, they look at unused Entitlements with higher matching (300%) first, until exhausted, or the Annual Max reaches $10,500.
Then they look at 200% unused Entitlements.
Then 100% if any.
It could take several years to capture all the Carry Forward Grants.
Family Income Threshold for 2023 Grant Entitlements is $106,717.
Remember, it’s based on 2nd year prior, so they are comparing that to 2021 Family Income.
The threshold is similar to the Top of the 2nd Federal Tax Bracket
Bond Entitlement for 2023 is $34,863 for the full $1,000.
Between $34,863 and $53,359 there is a sliding scale when the Bond reaches $0
For prior years the ranges are less.
2013 Thresholds $25,356 and $43,561
RDSP Awareness is such an important topic, however, there are a few items discussed in this video that are Not accurate.