Registered Education Savings Plan in Canada

 
A Registered Education Savings Plan is a type of savings account that grows tax free until a child is ready for post-secondary education. You may contribute up to $4,000 a year in an RESP
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An RESP, REEE for Quebec,  is a great way to ensure your child is well prepared financially for post secondary education.  

 
Facts about Registered Education Savings Plans
 

 

  • Any child can be the beneficiary
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  • Parents, grandparents, relatives or friends may put a combined total of $4,000 a year into RESPs for a particular beneficiary
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  • You can contribute for up to 22 years after a non-family plan has been opened and up to the year in which the beneficiary turns 21 years of age in a family plan
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  • Contributions to all RESPs on behalf of a beneficiary are subject to a lifetime limit of $42,000
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  • Contributions made to an RESP are not tax deductible, and are not taxed when returned to the subscriber
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  • The money in an RESP grows tax-free until the beneficiary is enrolled full-time in a qualifying program at a college, university or other recognized post-secondary educational institution
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  • Then, the beneficiary can use Educational Assistance Payments paid from the RESP to help finance his/her post-secondary education
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  • If the beneficiary does not go on to full-time studies, another beneficiary can be named
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  • The new beneficiary must be under 21 years of age and either the new beneficiary is a brother or sister of the former beneficiary or both the new and old beneficiaries are under 21 years of age and are related to the subscriber.
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  • An RESP must be terminated by the end of the 26th year.
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Registered Education Savings Plan
RESP Providers