Registered Education Savings Plan (RESP)

A Smart Way to Save for Your Family’s Future

A Registered Education Savings Plan (RESP) is a government approved plan for the purpose of providing post-secondary education funding for a beneficiary. Income earned within the plan is not taxed until it is withdrawn. Investing in an RESP will give you and your family members more financial freedom when making the choices that will affect their future. By starting now, you can grow your education funds by making affordable, convenient monthly deposits. Planning today for tomorrow is the smart way to realize your family’s education goals.

Advantages of an RESP

  • Government Incentives provide additional education funding
  • Income earned within the plan is tax-sheltered until withdrawn. If withdrawn by the beneficiary, he or she will usually have a lower marginal tax rate
  • An RESP provides long-term planning for a beneficiary to attend a post-secondary institution
  • Contributions belong to the subscriber and can be withdrawn without consequence when the beneficiary is EAP eligible

Contribution Limits for RESPs

Lifetime: $50,000 per beneficiary

Government Incentives Expand/Collapse

Canada Education Savings Grant (CESG)

The CESG is available to eligible RESP beneficiaries and is based on the annual contribution paid in the plan. The Federal government will contribute 20% annually on the first $2,500 deposited into an RESP to the end of the year in which the beneficiary attains age 17*.

All children under the age of 18* who are resident in Canada automatically accumulate CESG contribution room.

  • Annual CESG maximum: $500 per beneficiary ($1,000 where beneficiary has unused CESG contribution room)
  • Lifetime CESG maximum: $7,200 per beneficiary
  • Eligible beneficiaries receive up to 20% additional CESG on the first $500 RESP contributions
  • Eligibility for additional CESG is determined by the child’s family net income
  • Eligible beneficiaries could receive additional CESG of $100 annually for a total combined basic and additional CESG of $600 annually
  • Lifetime CESG maximum remains at $7,200 per beneficiary

*Some restrictions apply for RESP beneficiaries aged 16 and 17

 

Canada Learning Bond (CLB)

The CLB is available to children born on or after January 1, 2004. Eligible beneficiaries will receive an initial grant of $500 and subsequent grants of $100 per year of eligibility. The CLB eligibility is determined by the child’s family’s net income and entitlement to the National Child Benefit (NCB) supplement. The lifetime CLB maximum is $2,000 per beneficiary.

 

Saskatchewan Advantage Grant for Education Savings (SAGES Grant)

In 2013, the Saskatchewan government passed legislation to help families save for their children’s post-secondary education. Commencing in 2013, all children under the age of 18 automatically accumulate SAGES grant room. A child does not have to reside in Saskatchewan to accumulate grant room. However, to receive SAGES payments, contributions must be made to an RESP and the beneficiary must be a resident of Saskatchewan at the time the contributions are made. The Saskatchewan government will contribute up to 10% annually, on the first $2,500, deposited into an RESP, to the end of the year in which the beneficiary attains age 17*.

  • Annual SAGES Grant maximum: $250 per beneficiary ($500 where beneficiary has unused SAGES Grant room)
  • Lifetime SAGES grant maximum: $4,500

Some restrictions apply for RESP beneficiaries aged 16 and 17

Educational Assistance Payments (EAPs) Expand/Collapse

EAPs (comprised of earnings, CESG, CLB, ACES, QESI and SAGES Grant) may be withdrawn from the RESP to cover expenses associated with the pursuit of post-secondary education in a qualified educational program – tuition fees, textbooks, room and board, etc. These payments are taxable to the beneficiary.

We offer a variety of smart investment options that can assist you in maximizing your RESP contributions.

 

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