ic_REEE

RESP - Registered
Education
Savings Plans

What are RESPs?

RESPs are to education what RRSPs are for retirement. They let you put money aside for your child’s post-secondary education. In this way, you give your child the greatest gift: an opportunity to achieve a dream career.

How do RESPs work?

1. Contribute

You begin to save early by contributing to your child’s Registered Education Savings Plan (RESP) and benefiting from generous government grants.

2. Accrue

Together, your regular contributions and government grants generate returns. Your Registered Education Savings Plan (RESP) grows tax-free.

3. Reap

You get your contributions back to fund your child’s education. Your child receives the grants and the total return from the Registered Education Savings Plan (RESP).

Do the math!

cake-material-outlined

Child’s age

The maximum age for joining an RESP is 17 years.

year(s)
wallet-material-outlined

Contribution amount

The amount you wish to invest per month.

$/month
info
You can maximize your grants without changing your budget. An RESP loan can help you.
edit-location-material-outlined

Your postal code

To calculate the grant amount to which you are entitled.

Congratulations!

is the amount you will have saved by the time your child starts post-secondary education.

Your contributions
Government grants
Interest generated
warning
By investing this amount monthly, you would exceed the lifetime maximum of $50,000 in contributions per child. In order to avoid tax consequences, please contact an advisor.
info

The child will only be eligible for grants at 16 or 17 years of age if one of the following two conditions is met before the end of the calendar year in which the child turns 15:

  • $100 in contributions for four years (consecutive or not)
  • $2,000 in contributions

Advantages

To encourage education savings, the Government of Canada and some provincial governments add to the amount you contribute to your child’s RESP each year.

Combined with your regular contributions, this generous government aid, which is deposited into your RESP, goes a long way toward growing your savings.

Depending on your family income, you may be entitled to an additional grant. Your contributions, the grants, and the returns grow tax-free until withdrawal.

Federal government

Grants offered by the federal government
Grants offered by the federal government Canada Education Savings Grant (CESG) Canada Learning Bond (CLB)
Annual grant (% of contributions) 20% Limit of $2,000 per child for eligible families
Annual limit (per child) $500
Lifetime maximum (per child) $7,200
Additional grant (% of contributions) 10% or 20% of the first $500 invested each year

Provincial governments

Grants offered by provincial governments
Grants offered by provincial governments Quebec Education Savings Incentive (QESI) Saskatchewan Advantage Grant for Education Savings (SAGES)* British Columbia Training and Education Savings Grant (BCTESG)
Annual grant (% of contributions) 10% 10% Single payment of $1,200 (Lifetime maximum)
Annual limit (per child) $250 $250
Lifetime maximum (per child) $3,600 $4,500
Additional grant (% of contributions) 10% or 20% of the first $500 invested each year -
*SAGES payments are temporarily suspended effective January 1, 2018.

When your child goes on to post-secondary education, you get your money back, and you do not have to pay tax on the amounts you receive.

In the meantime, your child receives the grant money and the returns earned on the entire RESP account in the form of Education Assistance Payments. Since the tax rate is generally lower for students, the amount of tax to be paid on the money received is often minimal.

If your child does not go on to post-secondary education, you can :

  • Designate another child in the family
  • Withdraw your contributions tax-free
  • Transfer your accrued investment income to your RRSP under certain conditions

It is possible to open an RESP account for your child or a loved one in a few clicks in a secure way.

Choosing to invest in an RESP with iA Financial Group means having the guarantee, depending on the kind of investment, that the amounts deposited in the RESP are fully available when the child needs them.

Open an RESP online

Have you considered an RESP loan to maximize your grants?

Find out how borrowing to contribute more to your child’s Registered Education Savings Plan (RESP) can be a simple solution that pays off.

Find out more about RESP loans