Registered Education Saving Plane
A Registered Education Savings Plan (RESP) is a tax-advantaged savings plan that allows you to save for a child’s education after high school — like college, university, or trade school.
A Registered Education Savings Plan (RESP) is a tax-advantaged savings plan that allows you to save for a child’s education after high school — like college, university, or trade school.
An RESP is supported by the federal and some provincial governments. It helps you save money for a child’s future education, where the investments inside the investment account grow tax-free.
There is life-time limit of $50,000 per beneficiary and amounts contributed in excess of this are subject to a penalty tax of 1% per month on the excess until the over-contribution is withdrawn.
A smart way to save for your child’s education
Start saving early in your child’s Registered Education Savings Plan (RESP) and take advantage of generous government grants. There’s no minimum amount to start — you can set a monthly contribution as low as $25.
Your regular contributions and grants generate interest over time. The RESP can stay open for many years, so even if your child delays education, the savings continue to grow.
When funds are withdrawn for post-secondary education, your contributions are tax-free. Grants and growth are taxed at the student’s rate — usually resulting in little or no tax owed.
When your child enrolls in a qualifying post-secondary program, funds can be withdrawn to cover tuition, books, and living expenses — giving them a financial head start toward their future.
More savings. More flexibility. More possibilities.
You contribute the amount you want, when you want, and have access to advantageous investment options to help you save more.
Anyone can be a Plan Subscriber — no blood or adoptive relation to the child is required.
Possibility to name more than one child under the plan.
The subscriber must be related to the child by blood or adoption.
Based on your investor profile and financial goals, you can invest in a selection of advantageous investment options:
Education Bonus
You receive an education bonus of up to 15% of your total contributions once your commitment has been fulfilled.
Anyone can be a Plan Subscriber — no blood or adoptive relation to the child is required.
The allocation of your investments relies on a combination of two Diploma funds:
The allocation is established according to the child’s age.
School may not be for everyone. But college and university aren’t your kid’s only options. There are many other programs that an RESP can be used for, including foreign educational institutions abroad, trade schools or apprenticeships
An RESP can be kept open for up to 35 years (or 40 years for a specified plan).There’s plenty of time for someone to go back to school as their career and interests change.
You may be able to transfer the money between RESPs with the same beneciaries without having to pay taxes. Additionally, grants may be shared with a sibling if they have grant room available, otherwise they must be reimbursed to the government