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Registered Education Savings Plans

One way to save for a loved one's education is to start a Registered Education Savings Plan (RESP).   An RESP is a tax-sheltered account that enables money to be accumulated for the sole purpose of funding post-secondary studies.  Once the intended beneficiary begins a full time college, university or trade school program, payments to the student can be made from those funds accumulated in the RESP.

No income tax deduction is available for contributions to an RESP and the deadline for annual contributions, limited to a maximum of $4,000 per beneficiary (up to a lifetime maximum of $42,000) is December 31st.

The CESG is a grant from the Government of Canada paid directly into a beneficiary's Registered Education Savings Plan (RESP). The Grant can be as much as $500 each year per beneficiary, depending on the income of the primary caregiver, up to a lifetime maximum of $7,200 based on $2,000 in annual contributions for each beneficiary.

RESPs must be closed out by the end of the twenty-fifth year after the one in which the plan was established.