Registered Education Savings Plan (RESP) SSJ Financial Services -

Registered Education Savings Plan (RESP)

RESP is a savings vehicle generally used by parents to save for their children’s post-secondary education. With the rising costs associated with sending a child to college or university, RESP can really help because the government provides grants while the savings grow tax-deferred until withdrawn. When the student withdraws the funds for educational purposes, the withdrawals are taxed in the student’s hands, typically at a lower rate. You can contribute up to $50,000 per child and there are no taxes payable on the money earned in a RESP until it is withdrawn. When RESP grants and earnings are withdrawn by the child for educational purposes, they are taxed at the student’s generally low tax rate.

The RESP plans we recommend offers you Options and Advantages.

Eligibility for government grants
Low risk investments
Up to 15% Bonus

Build up a tax-sheltered fund to finance a child’s post-secondary education. A registered education savings plan (RESP) is the ideal financial vehicle to meet the job market’s education requirements and help you defray mounting education costs. You may designate a child, grandchild, nephew, niece, etc. as the beneficiary of an individual plan. There is no restriction on the relationship between the child and you. For family plans, the beneficiaries must be related to the subscriber by blood or adoption.

Some key Benefits of Opening RESP

Do not pay any tax on returns while your contributions are in the RESP.
Take advantage of government grants for up to a lifetime maximum of $7,200 per child.
Depending on income eligibility, some children are also eligible for a $500 Canada Learning Bond (CLB) with an additional $100 a year up until the age of 15.
The sooner you start, the more you can save.