RESP - Registered Education Savings Plan

Children education is one of the largest expenses of the family. Our advisors will help you plan funding for your child’s future education.

An RESP is an Education Savings Plan registered under Canada’s Income Tax Act, which is established for the purpose of providing financial assistance to a beneficiary (usually a child) when he or she pursues post-secondary education. The advantages are:

  • Investment earnings within an RESP are tax-sheltered until the child is ready for post-secondary education. The earnings are taxed in the hands of the student, who typically pays little to no tax.
  • In addition, RESPs may qualify for various government incentives
    1. Canada Education Savings Grant (CESG)
      • On the first $500 you save in your child’s RESP account, the CESG will depend to your family net income, up to $200.
      • When you save more than $500, Grant equals 20% of your additional annual contributions, up to $400 on the next $2000 saved.
      • Therefore, Annual maximum of $500 to $600 per eligible child to age 17, depending on family income.
      • Lifetime amount is $7,200.
    2. Canada Learning Bond (CLB)
      • For families with children born in 2004 or later whose parent or guardian is eligible for the National Child Benefit (NCB) Supplement
      • One-time initial contribution of $500 to an eligible child's RESP
      • An additional $100 for each year of eligibility until age 15
      • Up to $2,000 in total