DID You know ...?

 

 

That by 2021 a 4 year degree may cost over $100,000
 
With our RESP plan you can receive an additional 15% on top of the CESG 

INVEST in your Child's education Today!

A Registered Education Savings Plan (RESP) is a special savings account registered with the Canada Revenue Agency (CRA), designed to help families save for their children's post-secondary education.

 

Contributions made to an RESP grow tax-free until the beneficiary enrols in a qualifying post-secondary program. A lifetime limit of $50,000 per child can be contributed to an RESP. When withdrawing money for educational purposes, any income earned on the contributions is taxed in the hands of the beneficiary, who will typically have little income as a student and will likely pay minimal to no tax on the withdrawal.

 

In 1998 the Canada Education Savings Grant (CESG) program was initiated by the federal government to assist families in saving for their children’s post-secondary education 

 

With the CESG, the Canadian government matches 20% of the first $2,500/year contributed to an RESP on behalf of an eligible beneficiary, up to a maximum of $7,200 for the plan's lifetime

 

CESG matching stops at the end of the calendar year in which the beneficiary turns 17

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WHO Can Contribute?

The Subscriber is the person who opens an RESP on behalf of the beneficiary. In the case of an Individual Plan, anyone can contribute.

 

However, with a Family Plan RESP, contributions are limited to blood relatives.

 

Open an individual plan for your;

 

- Child

- Grand-Child

- Niece / Nephew

- Cousin

 

Play an active role in Education Savings for the ones we love.

PLAN Withdrawals

Withdrawals from the plan are referred to as EAPs and are only intended for post-secondary and related expenses. EAPs are taxed in the hands of the beneficiary, and since students typically have little income, they pay little or no tax. A T4A tax slip is issued in the beneficiary's name and must be included as income for the year they receive it.

 

Under an EAP, the beneficiary must:

 

Attend a designated post-secondary institution. 

Be enrolled in a qualifying educational program, inside or outside of Canada

 

For questions regarding qualifying programs, check Human Resources Centre of Canada or call 1-866-517-5650.