There is less than two months left to get up to $4,500 from the federal government in a Registered Disability Savings Account (RDSP). Currently, the Bank of Montreal is the only major bank set up for RDSP accounts.

The government has extended the deadline for 2008 contributions to RDSP plans.  Anyone with a RDSP plan now has until March 2, 2009 to make a contribution and take advantage of the government grant for 2008.

If you don't have money to contribute to the plan, the government may still issue you a bond based on an income test.

To be eligible for an RDSP you have to be a Canadian citizen or resident under the age of 60 and claiming the disability tax credit.  To claim the tax credit, you need your doctor, psychiatrist or similar professional to fill out a form describing your disability. Canada Revenue Agency will then review your claim.

If your annual income is less than $21,287 per year, you are eligible for a $1,000 government annual bond.  You could get $20,000 in bonds over the twenty-year lifetime of the plan.

The grants are based on contributions. With a household income of less than $75,769, the government matches the first $500 contribution with $1,500 and the next $1,000 with $2,000.   A $1,500 contribution would result in $5,000 in your RDSP account.

Even for families with a household income of more than $75,769, the government will match the first $1,000 in the plan dollar-for-dollar. You can receive grants up until age 49 with a maximum payout of $70,000.

Up to $200,000 can be contributed to the plan.