Registered Education Savings Plan RESP
Secure the future for my child today
A Registered Education Savings Plan (RESP) is a special savings account for parents who want to save for their child's education after high school. How does a registered education savings plan work?
Benefits of an RESP
- Goverment grants
Under the CESG and QESI, the Canadian and Quebec governments match 30% on the first $2,500 contributed annually to an RESP, to a maximum of $750 per beneficiary per year. The lifetime maximum per beneficiary is $10,200 – at no cost to you!
- RESP savings grow tax free
A RESP account provides tax-deferred growth to support saving for post-secondary education. Although it is not tax deductible, the money you put into an RESP will grow and compound tax-free until it is time to withdraw for your child’s education.
- Friends & family can contribute
Parents, grandparents and friends can contribute money any time to an RESP – up to a lifetime total of $50,000. A great idea for anyone who wants to give the perfect gift and help secure your child’s future.
How does a registered education savings plan work?
This money helps to pay the costs of a child’s full- or part-time studies after high school
- Apprenticeship programs
- CEGEPs (general or vocational college in Quebec)
- Trade schools
- Colleges
- Universities
Starting early and saving regularly is the key!
Automate your savings as you want with a regular,
pre-authorized contribution.
- Contributions could be monthly, annually or even a lump-sum gift — you choose
- Set it and forget it—contributions are automatically debited from your account
- You may change, pause or stop at any time
How much money does the government contribute to an RESP?
Canada Education Savings Grant (CESG)
Each year, the CESG provides 20% of the RESP contributions of up to $2,500. That means the CESG can add a maximum of $500 to an RESP each year. Families may be eligible to get the Additional CESG. which means an extra 10% or 20% added to the first $500 contributed per year.
Canada Learning Bond (CLB)
The CLB is available for children from low-income families born in 2004 or later and provides an initial $500 for the first year the child is eligible, up to age 15, plus $100 for each additional year of eligibility, up to 15 years for a maximum of $2,000.
Quebec Education Savings Incentive (QESI)
The Québec education savings incentive is a tax measure that encourages Québec families to start saving early for the post-secondary education of their children and grandchildren. It provides tax credits of up to $3600/child to boost your RESP education savings.
Up to $12,800 per child within reach
Thanks to the Registered Education Savings Plan, you’ll be amazed to see how fast your savings add up with these grants. Tax-free growth allows you to secure your child's future.
So start today!
Contact me to receive my free money starting today!
Up to $12,800 is waiting
RESP FAQs
Frequently asked questions for the Registered Education Savings Plans (RESPs)
The money that was contributed to the RESP over the lifetime of the plan may be withdrawn and returned to the subscriber. Contributions withdrawn are not subject to any additional tax. The subscriber can also elect to receive the income earned in the form of an Accumulated Income Payment (AIP).
Educational Assistance Payments include the interest earned in the RESP as well as any Canada Education Savings Grants, provincial grants and Canada Learning Bonds received. You can use this money to pay for post-secondary school expenses like tuition, books and transportation.
You don’t have to specify how the money will be used or submit receipts (but keep them in case there are questions). So if your child needs a car to get to classes, you can use RESP money to pay for it, along with insurance, gas, parking and maintenance.
Amounts received from an RESP do not affect the calculation of student financial assistance (loans and bursaries) in Quebec. Therefore, if your child is eligible for financial assistance from the Government of Quebec, having an RESP will have no impact on the amount he could receive in loans or grants for school.
You can transfer your plan to, another another eligible child, to an RRSP or spousal RRSP tax-free, provided you have sufficient contribution room. Alternatively, you can simply withdraw the income and pay taxes. Remember, your principal will always be returned to you tax-free.
An RESP must be terminated on or before the last day of the 35th year following the year in which the plan was entered into. The assets of an RESP can be for school, transferred to another child, or cashed out and taxed.