For those of you wanting to capitalize on the 2008 Federal contributions into a Registered Disability Savings Plan, today is the last day to get your plan set up and contribute for the 2008 year, leveraging up to $4,500 into your plan.

As most of you will know, the Federal Government extended the deadline (originally December 31st, 2008) until March 2, 2009 (today) for people to set up an RDSP and contribute, and receive the 2008 federal government contribution.  The federal government contribution is available through two mechanisms; the Canada Disability Savings Grant (CDSG), and the Canada Disability Savings Bond (CDSB).

The Canada Disability Savings Bond was created to encourage people to set up a plan, and does not require any contributions in order to receive the money into your plan.  As long as your income is below $21,287, and you have set up an RDSP, you will receive $1,000 into your plan every year, for up to $20,000.  If you have an income between $21,287 and $37,885, you can still receive a portion of the bond.

Again, no contributions necessary to receive the Bond.

The other way to receive more federal money into your plan is to have personal contributions from yourself, family or friends put into the plan.  By contributing money into your plan, you will also be eligible for the Canada Disability Savings Grant for up to $3,500 a year ($70,000 lifetime maximum).  Remember, you can receive both the Grant and Bond.

The amount of Grant you receive is, like the Bond, based on your income.  If you have an income equal to or below $75,769, you can receive $3 for every$1 you put into the plan for the first $500.  For the next $1000 you put into the plan, you will receive $2 for every $1.  This means that if you contribute at least $1,500 into your plan, you can receive up to $3,500 in Grant.

For those who have an income above $75,769, you can still receive $1 for every $1 you put in (for up to $1,000 annually).

If you want to capitalize on these 2008 government contributions (up to $4,500 for only $1,500 of your personal contributions), you will need to open up your RDSP today and, if you are planning to get the Grant for 2008, contribute whatever you can into your plan.  By putting in at least $1,500, you will maximize the amount you can receive from the federal government.

For people who are eligible for the full Grant and Bond, $1,500 of your money =$6,000 into the plan.