RESP Burlington

RESP Burlington

With rising education costs, you might be wondering if you can afford your child’s post-secondary education. You should stop worrying now and apply a Registered Education Saving Plan (RESP). Not only is it tax-free, but you can also benefit from government grants of up to 40%. You can contribute up to $50000 without any annual limit. Start thinking about your child’s future, apply for RESP at Punjab Insurance today. Contact Harpreet Puri for more details. We serve in Burlington and the surrounding areas.

How RESP works

RESP is an investment account where you hold cash in stocks, bonds, mutual funds etc. The amount is non-taxable until you with the amount. Also, to encourage savings the Canadian government will contribute an additional 20%. For example, if you are investing $2500, your account will have a total deposit of $3000. Government contributions would be a maximum of $500 per year and a maximum of $7200 in a lifetime and all of this amount is tax-free until you withdraw it. Opening an RESP account is a great wat to ensure that your child can go for higher education

What happens to the saved amount when RESP expires?

Well, if you don’t withdraw the amount and the count expires, the contributions made by the government will be returned to the government. The amount that you invested will be returned to you, including the total interest amount that is accumulated over time. However, there is an eligibility criterion that you have to fulfil before getting the amount:

  • You have to be a permanent resident of Canada
  • The account has to be more than 10 years old
  • All the beneficiaries should be a minimum of 21 years old and should not be eligible for EAP

The benefits of an RESP account:

  • The account is eligible for government grants and incentives
  • Investment income generated via RESP is tax-sheltered
  • You can decide how much to withdraw and when (flexible options)
  • Education funds for your child/children when they need it

For further details regarding RESP, contact Harpreet Puri. You can get in touch with us if you live anywhere in or around Burlington.

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