RESP

The beneficiary receives Educational Assistance Payments (EAPs) based on the subscriber's instructions. ¹ The maximum amount of EAPs that can be paid before end of the first term of full-time studies (usually a period of 13 consecutive weeks) is $8,000. ² For part-time studies, the amount is $4,000. After that time, if the beneficiary needs to cash in all of the investment income and grants during the same year to cover tuition and expenses, the full amount can be withdrawn.

If the beneficiary does not pursue postsecondary studies and no other beneficiary is named, grants will be returned to the government and contributions will be refunded to the subscriber. The subscriber may also receive the investment income generated by the RESP in the form of Accumulated Income Payments if certain conditions are met.

Canada Education Savings Grant (CESG)

• Maximum amount: $7,200 over the lifetime of the plan for each child born after 1997
• Beneficiary age limit: 17 years old
• Grants are equivalent to 20-40% of annual contributions (based on family income), up to a maximum of $500 per year per beneficiary.
• Unused grants can be carried forward at a rate of one per year (up to a total of $1,000 in grants per year).
• You can only claim one year's worth of unused grants at a time. This means that the maximum annual contribution eligible for grants is $5,000. This contribution will earn you the maximum grant of $500 for the current year and $500 of unused grants from a previous year.

Quebec Education Savings Incentive (QESI)

• Maximum amount (received as a tax credit): $3,600
• Beneficiary age limit: 18 years old
• The basic amount is equivalent to 10% of net annual contributions to the plan, up to $250 per child per year.

Canada Learning Bond (CLB)

• Maximum amount: $2,000
• Beneficiary age limit: 15 years old
• Grant for children from low-income families born after 2004
• $500 paid in the first year and $100 paid in subsequent years where the family meets income criteria

Other provincial education savings incentives

British Columbia offers additional grants.

The beneficiary of an RESP is an individual to whom or for whom the promoter agrees to make Educational Assistance Payments if that person is entitled to receive them at the time of payment.

An RESP can be opened by an individual and/or his or her spouse, Subscribers need to provide a valid social insurance number for themselves and all beneficiaries.

Unused grant room from previous years can be carried forward at a rate of one per year.

1. Trusts may not act as subscribers.
2. Amounts may be higher for certain programs with higher tuition fees.