Registered Education Savings Plan(RESPs)

RESPs provide a mechanism for tax sheltering investments that are made specifically for post-secondary education. In addition, the Federal Government contributes a grant of 20% of the yearly deposits for children/teenagers up to age 17. Current overall deposit maximum for RESPs is $50,000 per child. Withdrawals from RESPs can be tax-advantageous, provided they are used for post-secondary education purposes - the grant and investment growth are taxed in the hands of the full-time University/College student who is usually in a very low tax bracket, while the original capital is attributed to the parents/grandparents/contributors, which is not taxable. Eligible investments for RESPs include Mutual and Segregated funds. For current Federal Government administrative rules, please click here >>