Canada Disability Savings Regulations

5.4 (1) If a disability assistance payment is made to a beneficiary who is the subject of an election made under subsection 146.4(4.1) of the Income Tax Act, the issuer of the RDSP shall repay to the Minister, within the period set out in the issuer agreement, the least of the following amounts:

• (a) $3 for every $1 of disability assistance payment made,

• (b) the fair market value, immediately before the making of the disability assistance payment, of the property held by the RDSP, and

• (c) the amount determined by the formula

  A + B – C

  where

  A

  is the assistance holdback amount of the RDSP immediately before the beneficiary ceased to be a DTC-eligible individual,

  B

  is the amount of any grant or bond that is paid into the RDSP during the period beginning on the day on which the beneficiary ceased to be a DTC-eligible individual and ending on the day on which the disability assistance payment is made, and

  C

  is the amount of any grant or bond that has been repaid since the day on which the beneficiary ceased to be a DTC-eligible individual.

(2) An issuer that repays the amount referred to in paragraph (1)(a) is to do so from the grants and bonds that were paid into the RDSP within the 10-year period before the beneficiary ceased to be a DTC-eligible individual and those that were paid into the RDSP within the period referred to in the description of B in paragraph (1)(c), in the order in which they were paid into it.

(3) Subsection (1) does not apply in respect of any disability assistance payment made in the calendar year in which the beneficiary of the RDSP attains 60 years of age, or in any subsequent calendar year, if the total amount of disability assistance payments made to the beneficiary in that calendar year is less than or equal to the amount determined in accordance with paragraph 146.4(4)(l) of the Income Tax Act for that calendar year.