RESP

Invest in your children’s education with tax deferred growth and valuable government grants to help secure their future.

Invest in Your Child’s Future Education

A Registered Education Savings Plan (RESP) is a tax-advantaged savings plan designed to help parents, grandparents and other family members save for a child’s post-secondary education.

With the rising cost of education, an RESP provides an opportunity to build savings through tax-deferred investment growth and valuable government grants, helping make future educational expenses more manageable.

Contributions are not tax deductible, but investment earnings generally accumulate without annual taxation while funds remain in the plan.

Key Benefits of an RESP

An RESP helps families prepare for education expenses while taking advantage of government incentives and long-term savings opportunities.

Government Grants

Eligible contributions can qualify for government grants that help increase your education savings.

Tax-Deferred Growth

Investment earnings generally accumulate without annual taxation while funds remain in the RESP.

Flexible Contributions

Contribute according to your financial circumstances, subject to the lifetime contribution limit.

Educational Flexibility

Savings can help fund eligible university, college, trade school and other qualifying post-secondary programs.

Family RESP Options

A family RESP can help you save for multiple eligible children under one plan, subject to applicable rules.

Government Grants: Make Your Savings Go Further

One of the most attractive features of an RESP is the Canada Education Savings Grant (CESG). The basic CESG generally provides 20% of eligible annual contributions, up to $500 per beneficiary each year, subject to eligibility and available grant room.

For example, contributing $2,500 annually may generate an additional $500 in basic CESG, if the beneficiary qualifies and the available grant room has not been used.

Canada Education Savings Grant (CESG)

Eligible contributions can receive the basic CESG, with a lifetime maximum of $7,200 per beneficiary. Additional CESG may be available for eligible families based on income.

Unused Grant Entitlement

Eligible beneficiaries may receive up to $1,000 in basic CESG in a year when catching up on unused grant room, subject to the applicable rules and contribution requirements.

Canada Learning Bond (CLB)

Eligible children from lower-income families may qualify for up to $2,000 through the Canada Learning Bond, without requiring personal RESP contributions.

Provincial Education Grants

Additional provincial programs may be available. For example, eligible children in British Columbia may qualify for the one-time $1,200 BC Training and Education Savings Grant, subject to eligibility requirements and deadlines.

How Much Can You Contribute to an RESP?

There is no annual RESP contribution limit, but the lifetime contribution maximum is $50,000 per beneficiary across all RESPs.

$50,000 Lifetime Limit

Track contributions made to all RESPs for the same beneficiary to avoid exceeding the lifetime limit.

Non-Deductible Contributions

Contributions are not tax deductible, but investment earnings generally grow on a tax-deferred basis while held in the plan.

Start Saving Early

Regular contributions over time can help build education savings and may help you take advantage of available government grants.

Government grant eligibility and limits depend on the beneficiary’s circumstances, contribution history and applicable program rules.

Accessing RESP Funds

When the beneficiary enrols in an eligible post-secondary program, RESP funds can help cover qualifying education-related expenses. The tax treatment depends on the type of withdrawal.

Original Contributions

Contributions can generally be withdrawn tax-free because they were made with after-tax money.

Educational Assistance Payments (EAPs)

Eligible government grants and investment earnings may be paid to the student as EAPs. These payments are generally taxable to the student.

If Education Plans Change

If the beneficiary does not pursue eligible post-secondary education, options may include keeping the plan open, transferring eligible benefits to another beneficiary or making other permitted withdrawals, subject to applicable conditions and potential taxes.

Start Planning for Their Future Today

An RESP can help reduce the financial burden of post-secondary education while taking advantage of government grants and tax-deferred investment growth.

InsureBizz offers RESP investment solutions, including segregated funds, to help families build education savings according to their financial goals and individual circumstances.

Explore RESP Solutions