VermilionCreditUnion

RESP

It's never too early to start saving for their future with a Registered Education Savings Plan (RESP)

Prepare today for when they make their way to university, college, a trades school or an apprenticeship program.

Saving Grants Available

Canada Education Savings Grant (CESG) helps boost your savings with the Government of Canada contributing 20% of your contributions up to an annual limit of $500 and a lifetime limit of $7,200.00

Canada Learning Bond (CLB) is an additional grant available to eligible individuals.

Eligibility

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Key Requirements

Beneficiary is a resident of Canada.
It is required to provide the Social Insurance Number (SIN) for the beneficiary to open the RESP.
Start your RESP savings with as little as $25 a month.

Contributions

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It is a tax sheltered investment that allows your investment to grow.

There is a lifetime limit of $50,000 per child. The Canada Education Savings Grant (CESG) will contribute a annual maximum of $500 annually up to a lifetime of $7,200.
Contributions are not tax deductible.
Additional grants are available to eligible individuals.
Anyone is able to contribute, not just the parents of the child.

Withdrawals

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Funds are withdrawn in the beneficiary's name and become part of their taxable income for that year, which is typically a low tax rate.

Proof of enrolment in an approved apprenticeship program, trade school, college or university.

Start building their nest egg.

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Try our Education Savings Calculator to build your plan and start growing their savings today!

Education Savings Calculator

A Registered Education Savings Plan (RESP) allows you to save for your child's future education needs. It is a tax sheltered investment that allows your investment to grow. The biggest RESP benefit is that the government will kick in 20% of your contributions, up to an annual limit of $500 and a lifetime limit up to $7,200. This program is called the Canada Education Savings Grant (CESG) and is available to all income levels. Lower and middle income families may be eligible for additional grants such as the Canada Learning Bond.

Things to know:

Contributions are not tax deductible
You can contribute up to $50,000 per child (beneficiary)
Funds are withdrawn in the beneficiary's name and become part of their taxable income for that year.

Anyone can invest funds in an RESP for a child. Typically it is a parent, grandparent or guardian. It is required to provide the Social Insurance Number (SIN) for the beneficiary to open the RESP.

Investing in an RESP helps to ensure that when your child or the beneficiary is ready to attend post-secondary, there are funds available to assist with the cost. Education can be a huge expense so starting early is always a great idea.

There is no annual limit to how much you can contribute to an RESP, but there is a lifetime limit of $50,000 per child. If you contribute a large lump sum, you will reap the benefits of an extended investment period, but you will also loose out on the government grants, as the CESG only applies to the first $2,500 annual contribution.

Multi-children families can open an RESP Family Plan. The same benefits and contribution limits apply and there are efficiencies in holding one plan, rather than multiple individual ones.

For in-depth RESP planning, we are here to help! Connect with a Financial Advisor today! 780-853-2822