REGISTERED EDUCATION SAVINGS PLAN (RESP)

🔹 What is a RESP?  A Registered Education Savings Plan (RESP) is a government-registered account designed to assist parents, guardians, and families in saving for a child's post-secondary education.  🔹 Key Benefits  Government Grants: The Canada Education Savings Grant (CESG) enhances annual contributions by 20% (up to $500 per year). Families with lower or middle income may qualify for up to 40% in government grants.  Tax-Deferred Growth: The investment income within an RESP grows tax-free until it is withdrawn.  Tax Advantage on Withdrawals: When the funds are used for education, withdrawals are taxed at the student's rate, which is typically very low.  Flexibility: Family members can contribute to the RESP, and the funds can be utilized for college, university, trade schools, or apprenticeships.  Lifetime Limits: You can contribute up to $50,000 per child and receive up to $7,200 in CESG grants.