Question 1

What is the RDSP catch-up provision for the CDSG?

Accepted Answer

When you open an RDSP late, or in any year you contributed less than the maximum, your unused Canada Disability Savings Grant (CDSG) entitlement accumulates. Up to 10 years of unused grant room can be carried forward, and the annual CDSG cap rises from $3,500 to $10,500 during catch-up. The catch-up is paid in the year you make the contributions, not when the entitlement was originally earned. You must claim all carry-forward room before the end of the year the beneficiary turns 49.

Question 2

How many years of unused CDSG can I carry forward?

Accepted Answer

A maximum of 10 calendar years of unused CDSG entitlement can be carried forward at any time. Years older than 10 are permanently lost. The carry-forward window starts the year the beneficiary became eligible for the Disability Tax Credit (DTC), even if no RDSP was open in those early years — entitlement accumulates in the background.

Question 3

What is the annual CDSG cap during catch-up?

Accepted Answer

During catch-up, the CRA pays up to $10,500 of CDSG per calendar year (compared to the regular $3,500 cap). At low family income (under $106,717 for 2025), you achieve the $10,500 cap by contributing about $4,500 in a year: $1,500 toward the current year ($500 at 300% + $1,000 at 200% = $3,500) plus $3,000 covering two carry-forward years.

Question 4

Does my current income or my past income determine the match rate?

Accepted Answer

The match rate (300%/200%/100%) is based on the family net income reported to the CRA for the year the entitlement was originally earned, not the year you contribute. This means catching up entitlement from years when you had low income is more valuable than catching up high-income years. This calculator simplifies by applying current income to every catch-up year — the actual amount may be higher if your past income was lower.

Question 5

When does CDSG eligibility end?

Accepted Answer

CDSG (regular and catch-up) is only paid for contributions made by December 31 of the year the beneficiary turns 49. After that, no further matching grant is available — only your own contributions and accumulated growth continue inside the plan. If you have significant unused entitlement and the beneficiary is approaching 49, accelerating contributions can capture grants that would otherwise be lost forever.

Question 6

Can I lose CDSG I already received?

Accepted Answer

Yes, indirectly. If you withdraw from the RDSP within 10 years of receiving a grant, the 10-year holdback rule requires you to repay $3 of grants and bonds for every $1 withdrawn, up to the Assistance Holdback Amount (AHA). Closing the RDSP, transferring it improperly, or losing DTC eligibility can also trigger repayment of grants received in the prior 10 years.

Question 7

How do I claim CDSG catch-up?

Accepted Answer

You don't need to apply separately. When you contribute to your RDSP, your financial institution reports the contribution to Employment and Social Development Canada (ESDC). The CRA automatically calculates your unused entitlement based on past tax returns and pays the grant directly into the RDSP, typically within 4–6 weeks. To maximize catch-up, ensure all DTC-eligible years have tax returns on file with the CRA.

Question 8

How does the 10-year RDSP carry-forward window work?

Accepted Answer

The RDSP carry-forward window covers the 10 calendar years immediately before the current year. Each eligible year accrues theoretical CDSG entitlement (up to $3,500/yr at low income, $1,000/yr at higher income) and CDSB entitlement (up to $1,000/yr if income qualifies). The clock starts at the later of January 1, 2008 (program inception) and the year the beneficiary first became DTC-eligible. Years older than 10 are forfeited - they can never be claimed. When you contribute during catch-up, the annual CDSG cap rises from $3,500 to $10,500 and CDSB can pay up to $11,000 in a single year ($1,000 current + $10,000 from carry-forward). All carry-forward must be used by the end of the year the beneficiary turns 49.

Year	Contribution	CDSG grant	Effective match
2026	$4,500	$10,500	233%
2027	$4,500	$10,500	233%
2028	$3,000	$7,000	233%

RDSP Grant Catch-Up Calculator

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