Registered Education Savings Plan (RESP)

RESP

Registered Education Savings Plan (RESP)

Registered Education Savings Plan (RESP) in Brampton

At the trend of the rising education expenses, RESP is an excessively tax-benefitted plan to save for your child’s post-secondary education. Registered Education Savings Plan (RESP) in Mississauga combines flexibility, tax-deferred investment growth and direct government assistance to help you reach your education savings goals for your children. Opening a RSVP can avail you the benefit of receiving grants from the Federal and Provincial Government. One can contribute a lifetime of $50,000 per child with no annual contribution limit. When the beneficiary withdraws money for post-secondary education, only the interest accumulated is taxable as income in the hands of the beneficiary.

How a Registered Education Savings Plan account work?

  • A subscriber who is usually the parent opens an RESP account for their children, who are the beneficiaries.
  • The subscriber, as well as grandparents and other guardians, provide contributions for the RESP account.
  • Government grants (if applicable) will be added to the RESP account.
  • The amount personally contributed to the account will be given a tax-benefit.
  • The RESP account provider also known as the promoter will ensure payments to the
  • beneficiaries are made according to the terms of RESP.
  • The payment can be availed by the beneficiaries for any tuition for post-secondary education.
  • If the child does not attend post-secondary education, the provider can return the contributions made back their original source tax-free

What happens to savings in an RESP when it expires?

  • Any savings in the account received from the Canada Education Savings Grant (CESG) or Canada Learning Bond (CLB) will be returned to the Government of Canada.
  • Any personal savings in the account will be returned to the person who opened the account.
  • Any interest on both the above savings will be returned to you if the following needs are met:
  1. The person who opened the account is a Canadian resident
  2. The RESP account is older than 10 years
  3. All the beneficiaries are a minimum f 21 years old and are not eligible for EAP ( Educational Assistance Payment)

Please feel free to contact us for more details and explanations on any conditions or penalties that may apply to your RESP should you decide to close the account.

With any financial product that you buy, it is important that you know you are getting the best advice from a reputable company as often you will have to provide sensitive information online or over the internet.

With any financial product that you buy, it is important that you know you are getting the best advice from a reputable company as often you will have to provide sensitive information online or over the internet.With any financial product that you buy, it is important that you know you are getting the best advice from a reputable company.

With any financial product that you buy, it is important that you know you are getting the best advice from a reputable company as often you will have to provide sensitive information online or over the internet.

With any financial product that you buy, it is important that you know you are getting the best advice from a reputable company as often you will have to provide sensitive information online or over the internet.With any financial product that you buy, it is important that you know you are getting the best advice from a reputable company.

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