Ali Pahlavani Financial Strategies Desjardins Financial Security Independent Network

Registered Education Savings Plan

Main Features

  • A registered education savings plan (RESP) allows parents and grandparents who set up the plan to finance their children’s or grandchildren’s post-secondary education.
  • A family RESP can be established for several children and contributions made on behalf of each child, provided that the beneficiaries are related to the subscriber by blood or adoption.
  • The lifetime RESP contribution limit is $50,000 per child, with no annual limit.
  • The federal government provides a matching contribution of 20 cents for every dollar saved, up to a maximum of $500 per year ($1,000 with unused contribution room) and a $7,200 lifetime limit.
  • The provinces of Alberta and Quebec have also additional measures for RESP.
  • RESP contributions are not tax deductible but can grow tax-free until the child begins post-secondary education.
  • Many investment tools such as guaranteed certificates of deposit sold through Desjardins Financial Security Investments Inc. are RESP eligible.

Major Advantages

  • Grandparents can take out an RESP for their grandchildren.
  • RESPs can have more than one beneficiary, which makes it easier to transfer accumulated sums from one child to another if one of the two does not pursue post-secondary education.
  • RESPs are not subject to any foreign content restrictions.

To get more information on Registered Plans please click here

Warning: The above text is of general nature and is intended for explanatory purpose only. Each of the products described above has its own specific features. Moreover, only the product contracts contain the complete terms and conditions as well as restrictions and exclusions to which they are subject.