Registered Education Savings Plan (RESP)

Save for your children's post-secondary education, tax-free.

Is this savings plan for you?

  • You want to save for the cost of post-secondary education for your children, grandchildren or a child who is dear to you.
  • You want to easily accumulate capital, tax-free.
Outlines

Main feature: Tax-sheltered investment income

Maximum contribution: $50,000 per beneficiary for the duration of the plan

Annual contributions: $2,500 per beneficiary, for a Canada Education Savings Grant (CESG) of 20%

Total or partial withdrawal for education: Without penalty if withdrawn for education purposes

 

Features
Investment options
  • Guaranteed Investment Certificates (GICs)
  • Daily interest account
  • Mutual funds
Deposit frequency
  • Weekly, biweekly (26 payments per year), bimonthly (24 payments per year) or monthly.
Annual basic CESG limit
  • $500 per beneficiary (up to a limit of $1,000 per beneficiary if sufficient grant carry forward is available).
Lifetime contribution limit
  • $50,000 per beneficiary
Lifetime basic and additional CESG limit
  • $7,200 per beneficiary
Contribution time limit
  • December 31 of the year the beneficiary turns 17
Plan’s Existence**
  • Plan can remain active up to 35 years from start date but must be terminated by the end of its 35th year.
Transfers***
  • If beneficiary decides not to pursue his or her studies, you may be able to transfer the RESP interests into your RRSP.

** If beneficiary is receiving a Disability Tax Credit, the plan may remain open until the end of his or her 40th year.
*** Certain conditions apply.

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