Advantages of contributing to an RESP

• You are able to open an RESP for your child or a relative  

• You can open up an individual or a family plan depending on your situation

• Every year, 20% of every $2,500 is matched by the federal government, up to a lifetime maximum of $7,200 per child

• When your child starts college or university and withdraws funds from the RESP, it is taxed in their name which means less tax on the payments

• Income earned under the plan is not taxed until it is withdrawn

• Canada Education Savings Grant (CESG) through the federal government will contribute 20% annually on the first $2,500 deposited into an RESP for children up to the end of the year they turn 17

• You are able to contribute up to $50,000 per beneficiary and lower income families can qualify for additional funds through the Canada Learning Bond

• The Canada Learning Bond (CLB) provides an additional grant of up to $2,000 per child to help families with a modest income. Children must be born after December 31, 2003 to qualify