Registered Education Savings Plan (RESP)
An RESP is a tax-sheltered plan that helps you save for a child’s post-secondary education faster.
Benefits of an RESP
- Tax Sheltered Growth
Earnings within an RESP are not taxed. When the funds are taken out for education, withdrawals are taxed in the student’s hands, often resulting in little or no tax.
- Get Government Contributions
Grow your savings faster with the Canada Education Savings Grant (CESG), Canada Learning Bond (CLB), and other government incentives.
- Built-In Flexibility
If the child doesn’t pursue post-secondary education, you may be able to choose a new beneficiary. Or, if he or she wants to travel first, you have 35 years to use the funds.
Canada Education Savings Grant (CESG)
Who Qualifies
Any eligible RESP beneficiary under age 18. Beneficiaries must be residents of Canada and have a Social Insurance Number (SIN).
Canada Education Savings Grant (CESG)
Annual Government Payment
The government matches 20% on the first $2,500 contributed annually to an RESP, to a maximum of $500 per year.
Maximum Contribution
The maximum total CESG the government will give is $7,200 per beneficiary.
How to Grow Your RESP Savings Faster
Contribute the max contribution each year $2500 per beneficiary. You can contribute any amount to a RESP, subject to a lifetime contribution limit of $50,000 per beneficiary. You can contribute to an RESP for up to 31 years, and the plan can remain open for a maximum of 35 years.
Please contact your Relationship Manager to review if you are making the most out of your RESP.