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BMO Bank of Montreal Welcomes Extension of 2008 RDSP contribution deadline

TORONTO, December 23, 2008 – BMO Bank of Montreal applauds the federal government's decision to extend the deadline for opening a Registered Disability Savings Plan, making contributions and applying for the matching Grant and the income-tested Bond for the 2008 contribution year to March 2, 2009.

“As of noon hour today, we have received more than 3,500 calls about the RDSP,” said Linda Knight, President and Chief Operating Officer, BMO Investments Inc., BMO Financial Group. “This level of demand is a testament to the popularity of this new program and its importance to Canadian families.”

BMO Bank of Montreal is the first bank to offer Canadians the RDSP, a new federal government initiative introduced to enhance the long-term financial security of people with disabilities.

“While BMO was the only national financial institution ready to accept applications by the original December 31, 2008 deadline, we applaud the federal government's decision to extend the contribution deadline to March 2, 2009 to give families more time to open accounts and make contributions,” added Knight.

Customers can apply for a BMO RDSP through BMO's investment call centre, BMO Investment Centre (BMO IC) at 1-800-665-7700.

Contributions to an RDSP may qualify for payments from the Canada Disability Savings Grant (CDSG) program to a lifetime maximum of $70,000 per beneficiary. Lower-income families may qualify for payments from the Canada Disability Savings Bond (CDSB) program without having to make a contribution to an RDSP, up to a lifetime maximum of $20,000.

About the RDSP

  • Contributions are not tax deductible but grow on a tax-deferred basis;
  • Earnings generated on contributions are tax-exempt while in the plan;
  • When earnings are withdrawn as part of a disability assistance payment, they are taxable in the hands of the beneficiary (likely to be taxed at a lower rate);
  • The lifetime contribution limit is $200,000 per beneficiary. There is no annual contribution limit;
  • Only one beneficiary can be named to an RDSP. A beneficiary can only have one RDSP.
  • For more information please visit www.hrsdc.gc.ca/en/disability_issues/disability_savings/index.shtml


How to apply for a BMO RDSP

  • BMO RDSP will be serviced and sold exclusively through BMO's investment call center, BMO Investment Centre (BMO IC) at 1-800-665-7700. Bell Relay Service: 1-800-855-0511
  • BMO IC is open Monday to Friday 7 AM to 11 PM (EST) and Saturdays 9 AM – 5 PM (EST) BMO IC provides service in both two official languages plus Cantonese and Mandarin.
  • Holiday Hours: Dec. 24 open until 6pm (EST), Dec. 31 open until 9pm (EST)

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