RESP Basics
What does RESP stand for?
Registered Education Savings Plan
What types of investments can be held within an RESP?
Stocks, bonds, mutual funds, savings accounts, GICs and ETFs
What does CESG stand for?
Canada Education Savings Grant
What is the maximum Canada Education Savings Grant (CESG) that the beneficiary can receive in a year?
$500
Who can open an RESP account?
Parents, Guardians, or Grandparents.
What happens to investment income earned within an RESP?
It grows tax-free until withdrawn.
What percentage of CESG does the government match on the first $2500 contributed annually?
20% (equal to $500 maximum in grant money from the CESG)
What is the maximum annual contribution limit that qualifies for the Canada Education Savings Grant (CESG)?
$2,500
What is the primary purpose of an RESP?
To save for a child's post-secondary education.
Can contributions to an RESP be withdrawn at any time?
Yes, contributions can be withdrawn tax-free at any time.
What does CLB stand for?
Canada Learning Bond
What is the maximum CESG one beneficiary can receive in a lifetime?
$7200
What does a member need in order to qualify to withdraw from their RESP?
Valid proof of enrollment from a eligible educational institution
What 3 advisors in the branch can help open an RESP mutual fund account?
Amber, Dan or Jordan.
How much does a member need to contribute to receive CLB (Canada Learning Bond), if eligible?
No contribution necessary, just open the account
How much should a Subscriber contribute this year to maximize the grant money they receive, if the beneficiary was born in 2021 and they have already contributed $2500 in 2023. (Household income is >$200k)
$5000
What can the RESP funds be used for once the member provides a proof of enrollment to a valid educational institution (University, College, trade school, etc.)?
Anything!
*DAILY DOUBLE*
What is the maximum lifetime contribution limit for an RESP?
$50,000
What is the lifetime maximum that a beneficiary can receive from the CLB (Canada Learning Bond)?
$2,000
A beneficiary is 16 years old and an RESP has never been opened for them in the past. How much CESG will they receive with a $5000 contribution?
$0