RESP
What Is RESP?
A Registered Education Savings Plan (RESP) is designed to help cover tuition and various study-related expenses, such as housing, school supplies, food, and transportation.
How much can I contribute to my RESP?
You can contribute up to $50,000 per beneficiary to a Registered Education Savings Plan (RESP) over its lifetime. There are no annual contribution limits, but contributions must be made before the beneficiary turns 31.
Key features of the RESP
The Canada Education Savings Grant (CESG) offers 20% of annual contributions to an RESP, up to $500 per beneficiary per year.
The maximum lifetime CESG is $7,200 per beneficiary.
Based on income eligibility, beneficiaries may also receive additional CESG and CLB.
The investment income in an RESP grows tax-free as long as it stays in the plan.
The funds can be used for a wide range of educational institutions.
Withdrawals are taxed at your child’s tax bracket.
If your child doesn’t go to post-secondary school, your savings can be returned to you.