An RESP is a savings account designed to help parents or guardians save for a child’s post-secondary education, with contributions growing tax-free and eligible for government grants.
Key Features of an RESP
Government Grants: Eligible for Canada Education Savings Grant (CESG) and other incentives.
Tax-Deferred Growth: Contributions grow tax-free until withdrawn for education expenses.
Contribution Flexibility: No annual contribution limits, though there’s a lifetime maximum.
Multiple Beneficiaries: Can be set up for more than one child in a family plan.
Benefits of an RESP
Tax-Free Growth: Maximize savings for your child’s education without worrying about taxes.
Government Support: Receive additional funds through government grants and incentives.
Education Funding: Helps cover the rising costs of post-secondary education.
Long-Term Planning: Ensure your child has the financial support they need for future studies.
Note
This overview provides a general description of RESP accounts. Contribution rules, grant eligibility, and benefits can vary. It’s best to speak with a trusted advisor for tailored advice.