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A Registered Education Savings Plan (RESP) is a special savings account to help Canadian residents save for a child’s post-secondary education.
November 20, 2021 | Posted by: Jatinderbir Singh Bajwa
Benefits include:Help you systematically save and plan for a child’s education
Tax-sheltered growth – there’s no taxes payable on the money earned in a RESP until it’s withdrawn
Government Grants – Government matches 20% of RESP contributions up to $2,500 each year and to a lifetime maximum of $7,200
Additional Grants available for low-income families
Ability to catch up for any prior years you missed contributing- Save on your own schedule - No pre-defined savings structure within lifetime contribution limit of $50,000
- RESP loans can be used to maximize the Government Grant
- Most part-time and full-time post-secondary education qualifies for purposes of a withdrawal
- With a Family RESP, if one sibling doesn’t pursue post-secondary education, other siblings can use their grant money