Registered Education Savings Plan (RESP)
A Registered Education Savings Plan, or RESP, helps families save for a child’s post-secondary education. Contributions are not tax-deductible, but investment growth is tax-deferred, and government grants may help increase education savings.
The Government of Canada says the Canada Education Savings Grant can provide up to $7,200 per eligible child, while the Canada Learning Bond can provide up to $2,000 for eligible children from lower-income families. [canada.ca]
Best For
Parents
Grandparents
New families
Families who want to access government education grants
Families wanting to save for university, college, trades, or other qualifying education
Additional Plan Details
Common Uses
• University or college costs
• Trades and apprenticeship programs
• Tuition
• Books and supplies
• Student living expenses
• Education-related costs
Quick Questions Clients Should Ask
• Should I open an individual or family RESP?
• How much should I contribute each year?
• Are we maximizing available grants?
• What happens if the child does not attend school?
• Who should be the subscriber?
• How should the money be invested as the child gets older?
Common Mistakes
• Starting too late
• Missing available grant room
• Overcontributing beyond the lifetime RESP limit
• Not coordinating contributions between parents and grandparents
• Choosing investments that are too risky close to school age
• Not understanding withdrawal categories
Key Numbers
The CRA states that, for 2007 and later years, there is no annual contribution limit for RESPs, but there is a $50,000 lifetime contribution limit per beneficiary. [canada.ca]
Protect Your Business. Plan for the Future.
Start an RESP review to understand contribution planning, grant opportunities, and education savings options for your child or grandchild.