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REGISTERED EDUCATION SAVINGS PLAN (RESP)
An RESP helps you save for your child’s education with tax-deferred growth and government grants. Families may receive up to 40% in matching contributions through CESG programs, making RESP a powerful and affordable way to fund future studies.
Registered Education Savings Plan (RESP)
🔹 What is RESP?
A Registered Education Savings Plan (RESP) is a government-registered account that helps parents, guardians, and families save for a child’s post-secondary education.
🔹 Key Benefits
- Government Grants: The Canada Education Savings Grant (CESG) adds 20% on annual contributions (up to $500 per year). Families with lower or middle income may qualify for up to 40% grant.
- Tax-Deferred Growth: Investment income grows tax-free until withdrawal.
- Tax Advantage on Withdrawals: When used for education, withdrawals are taxed in the student’s hands, usually at a very low rate.
- Flexibility: Family members can contribute, and funds can be used for college, university, trade schools, or apprenticeships.
- Lifetime Limits: Up to $50,000 contributions per child and $7,200 in CESG grants.
