Registered Education Savings Plans

Planning For The Future!

A Registered Education Savings Plan (RESP) is a government approved plan for the purpose of providing post-secondary education funding for a beneficiary.  Income earned within the plan is not taxed until it is withdrawn.

The costs of obtaining a post-secondary education are increasing each year.  Investing in an RESP will give you and your family members more financial freedom when making the choices that will affect their future.  By starting now, you can grow your education funds by makin affordable, convenient monthly deposits.  Planning today for tomorrow is a smart way to realize your family's education goals.

Advantages of an RESP:

  • The Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB) provide additional education funding;
  • Income earned within the plan is tax-sheltered until withdrawn.  If withdrawn by the beneficiary, he or she will usually have a lower marginal tax rate;
  • An RESP provides long-term planning for a beneficiary to attend a post-secondary institution;
  • Contributions belong to the subscriber and can be withdrawn without consequence once the beneficiary is EAP eligible.

Qualified Post-Secondary Institutions:

Most Canadian post-secondary institutions and programs, including correspondence courses, qualify for the purpose of receiving RESP Educational Assistance Payments.  Certain foreign post-secondary institutions may qualify.

The Named Beneficiary:

The named beneficiary of an RESP is the individual or individuals who are eligible to receive the Educational Assistance Payments from the plan.  An Individual Plan limits the beneficary to one individual.  A Family Plan allows multiple beneficiaries; providing that each beneficiary is a sibling of every other beneficiary and must be related to the subscriber.  All beneficiaries much have a Social Insurance Number (SIN) and must be a Canadian resident.

The Subscriber:

The subscriber is the registered owner of the plan and the individual or individuals who make contributions to the RESP.  The subscriber can be an individual or an individual and his/her spouse/common-law partner, or a primary caregiver.


The lifetime maximum for contributions to all RESPs per beneficiary is $50,000.  An RESP may receive contributions for 31 years; following the year the RESP is opened.  After 31 years the contibutions must cease.  If an RESP is opened for a beneficiary who is eligible to receive a Disability Tax Credit, it may receive contributions for 35 years.

Canada Education Savings Grant:

The CESG is a government program that allows eligible beneficiaries to receive additional grant monies based on the annual contributions paid to the RESP.  The Federal government will contribute 20% of the first $2,500 annual contributions up to the end of the year in which the beneficiary turns 17 years of age; to an annual maximum of $500 and a lifetime maximum of $7,200.

Canada Learning Bond:

The CLB is available to children born on or after January 1, 2004.  Eligible beneficiaries will receive an initial $500 grant and subsequent annual $100 grants.  The eligibility of the CLB is based on the child's family net income and entitlement to the National Child Benefit (NCB) supplement.  CLB grants are issued to a lifetime maximum of $2000 per beneficiary.

Educational Assistance Payments (EAPs):

While the income earned on the funds in an RESP are tax sheltered, the payments paid to the beneficiary are taxable to the beneficiary.  EAPs (including contributions, CESG, CLB, and earned income) may be used to cover all expenses associated with post-secondary education; including, tuition fees, books, room and board, etc.



A Bright Future Ahead!