What is an RESP?
- Registered Education Savings Plan (RESP) is a government instrument designed to encourage and help families save for children’s post-secondary education.
- Federal government will top up your contributions by up to $500 a year with lifetime limit of $7,200 for each child.
- Low income families are subject to additional Education Assistance Payments (EAP).
- Maximum lifetime contribution limit for RESP is $50,000 per beneficiary.
- RESP withdrawals must be made to cover tuition, room and board, school supplies, computers, and transportation. Otherwise, the Education Assistance Payments, such as Canada Education Savings Grant and Canada Education Savings Bonds must be returned to the government.
