Registered Education Savings Plan (RESP)

Who Can Open an RESP?

It doesn’t matter if you are a parent, another family member or a caregiver. You can be a subscriber, the person who opens and contributes to the plan.

What Do I Receive?

You can open a Family Plan (for multiple beneficiaries – certain rules apply) or an Individual plan. The benefit to an RESP is the fact that the earnings are tax-sheltered and the government contributes 20% annually (Canada Education Savings Grant or CESG) on the first $2,500 deposited to the plan each year. That’s $500 a year in addition to your savings.

You may also be eligible for additional CESG, depending upon the family net income and entitlement to the National Child Benefit Supplement.

Advantages of an RESP

  • Anyone can open an RESP for a child —parents, guardians, grandparents, other relatives or friends.
  • Income earned within the plan is tax-sheltered until withdrawn. When withdrawn by the beneficiary, the tax rate will usually be marginal.
  • RESPs are eligible for the CESG - $500 based on the first $2,500 deposited annually.
  • You may be eligible for additional funds such as the Canada Learning Bond based upon income and the entitlement to the National Child Benefit Supplement.

What Happens if the Beneficiary Doesn't Continue Their Education?

  • Change the plan beneficiary.*
  • Transfer funds to another RESP.*
  • Collapse the plan.*

As the subscriber, you also have options for disbursement of the income earned within the plan:

  • Transfer the funds to your RRSP or to a spousal plan.*
  • Transfer funds to the Designated Educational Institution.*

*Check with us to determine the restrictions and/or penalties that may apply.

Opening an RESP is pretty straight forward. You can deposit in lump sums during the year, or even have recurring deposits setup. There are multiple investment vehicles for RESP's as well. Talk to a us and start "building" today!


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