Registered Education Savings Plan (RESP)
Did you know the average annual undergraduate tuition for a full-time student in 2011/2012 was $5,366? This doesn’t include additional expenses such as books, transportation, residency, computers or meal plans.
Start saving today, using the Registered Education Savings Plan (RESP) . It can be as little as $50 a month to get started.
There is a maximum contribution limit of $50,000 per child. However, there is no annual maximum contribution limit, so you may contribute as much or as little as you please. Any money contributed grows tax sheltered! When the time comes to withdraw your contributions, any gains earned will be tax deferred by your beneficiary as they can use their tuition credits to offset the income earned.
You’re entitled to free money! The Canada Education Savings Grant (CESG) offers a 20% grant on the first $2,500 ($500) contributed each year to a lifetime maximum of $7,200. If your family’s income is under $42,707 you’re also entitled to an additional 20% ($100) on your first $500 contributed. If your family’s combined income is between $42,707 and $85,414 you are entitled to a lower 10% ($50) of your first $500 contributed. Was your child born after Dec. 31st, 2003 and your family is receiving the National Child Benefit Supplement? If so, you are also eligible for the Canada Learning Bond which is a flat $500, and an added $100 for each year of eligibility until that child is 15.
To get rolling on these great opportunities available to you, please contact our offices to learn more. Get a head start on setting up your RESP’s today!