Registered Education Saving Plan (RESP)

A Registered Education Savings Plan (RESP) is an education savings plan that has been registered under the Income Tax Act and offers significant advantages to families saving for their child's future education expenses.

An RESP allows the growth income earned on contributions to remain tax deferred until your child enters a post-secondary program (within 35 years) and the money is withdrawn. A nominated child can be eligible for government grants up to $9,200.

Taxes are paid by the student when money is withdrawn to pay for education costs. Since most students have little or no income, the student pays little or no income tax. RESPs can fund most full-time or part-time trade, college or university as long as government requirements are met.

How Governments can help you save


The Government of Canada offers additional funding such as the Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB), which can add up to $9,200 in extra savings. Alberta residents can also qualify for the Alberta Centennial Education Savings Plan (ACES). Quebec residents may also qualify for the Quebec Education Savings Incentive.

Government Grants


check markCanada Education Savings Grant (CESG)

check markEnhanced CESG

check markCanada Learning Bond (CLB)

check markAlberta Centennial Education Savings Grant

check markQuebec Education Savings Incentive

check markContribution Limits

The CESG adds up to 20% ($500 maximum) to your annual contribution to a Registered Education Savings Plan (RESP) per child annually, to a lifetime maximum of $7,200 or when the child turns 17 years old, whichever comes first.

Additional CESG

Families with net income $44,701** or less may be eligible to receive up to $100 more CESG yearly for each of their children. The amounts contributed, up to the first $500 yearly to an RESP, may receive 20% of additional CESG (over the basic 20% CESG).

Families with a net income between $44,701** and $89,401** may be eligible to receive 10% additional CESG, up to the first $500 yearly (above the basic 20% CESG).

** Amount subject to change.

Canada Learning Bond

Children born on or after January 1, 2004 can be eligible for the CLB when the family receives the National Child Benefit (NCB) Supplement. Families can receive $500 for each child’s RESP in the first year they qualify for the benefit and may be eligible for $100 for each subsequent qualifying year to age 15. These funds can contribute up to $2000 for an eligible child’s RESP. 

 
Tax Advantages

Income earned in the RESP Plan grows tax deferred. Taxes are paid by the student when money is withdrawn to pay for education costs. Since most students have little or no income, the student pays little or no income tax.

Opening an RESP is not difficult. In fact, it only takes two simple steps:

1- Apply for a Social Insurance Number(SIN)

2- Choose an RESP Provider

 

Please contact us for your no-obligation consultation. We look forward to helping you and your family! 

 

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