20%
Basic CESG
$500/year
Contribute $2,500 in a year and the basic CESG may add $500, subject to eligibility.
RESP Education Guide
Build your child’s education fund with government support.
A Registered Education Savings Plan can help families save for education after high school while qualifying for federal education savings incentives and tax-deferred investment growth.
RESP Essentials
The most important RESP numbers at a glance
Understand the contribution limits, grants and education savings benefits available through an RESP.
MAX
Lifetime CESG
$7,200
This is the maximum lifetime Canada Education Savings Grant available for one beneficiary.
CLB
Canada Learning Bond
Up to $2,000
Eligible children from lower-income families may receive the CLB without personal contributions.
∞
No annual contribution limit
Flexible
There is no annual RESP contribution limit, but grant optimization and lifetime limits still matter.
LT
Lifetime contribution limit
$50,000
The lifetime RESP contribution limit applies per beneficiary across all RESP accounts.
1%
Overcontribution penalty
1% / month
Excess contributions may be taxed monthly until the overcontribution is withdrawn.
Education Savings Benefits
Small monthly savings can grow into meaningful education support.
RESP funds can support qualifying post-secondary education, including university, college, trade school and apprenticeship programs.
- Government grants can accelerate education savings.
- Investment growth is tax-deferred while inside the RESP.
- Family and friends may contribute, subject to plan rules.
- Funds may help cover tuition, books, tools, rent and transportation.
- Family plans may allow more than one related beneficiary.
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How RESP Money Works
Contributions and education payments are treated differently
Your contributions
- RESP contributions are not tax-deductible.
- Original contributions can generally be returned to the subscriber without additional tax.
- Contribution withdrawals may require repayment of CESG in some situations.
Educational Assistance Payments
- Usually include grants, bonds and accumulated investment earnings.
- Paid to the eligible student for qualifying post-secondary studies.
- Generally reported as income by the beneficiary, who may have little taxable income.
Common mistake: waiting too long to start
CESG is generally available only until the end of the calendar year in which the child turns 17. Special contribution conditions apply at ages 16 and 17, so starting before the end of the year the child turns 15 can be important.
Catch-Up Opportunity
Missed earlier CESG room may still be recoverable
Unused basic CESG room can carry forward. With enough unused room, contributing $5,000 in one year may attract up to $1,000 of basic CESG, subject to eligibility and annual catch-up rules.
NOW
Standard annual strategy
$2,500
A commonly used target to receive the maximum basic annual CESG of $500.
UP
Possible catch-up strategy
$5,000
May attract up to $1,000 of basic CESG where unused grant room is available.
AGE
Grant eligibility
Up to 17
Specific contribution conditions apply for beneficiaries who are 16 or 17.
Frequently Asked Questions
Common RESP questions
Can grandparents open an RESP?
Yes. Parents, grandparents and other adults can generally open an RESP, subject to provider requirements and the beneficiary’s eligibility information.
Can one child have multiple RESPs?
Yes, but the lifetime contribution limit applies across all RESP accounts for that beneficiary.
What happens if the child does not study?
Options may include changing the beneficiary, transferring qualifying amounts, returning grants to the government, or closing the plan. Tax and plan conditions apply.
Are RESP contributions tax-deductible?
No. Personal RESP contributions are not deducted from taxable income.
Can RESP money be used for trade school?
Yes, RESP funds may be used for qualifying post-secondary programs such as trade schools, apprenticeships, colleges and universities.
How long can an RESP stay open?
Generally, contributions may be made for up to 31 years after opening, and the plan must normally be completed by the end of its 35th year. Special rules can apply.
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