Registered Educational Savings Plans (RESPs)
Not updated for March 2007 federal budget. Visit other sites for the latest information.
Registered Educational Savings Plans (RESPs) help save money for a child's higher education.
Basics
- can make deposits up to $4,000 per child per year
- maximum of $42,000 per child
- 20% Canada Educational Savings Grant (CESG) on first $2,000 each year
Advantages
- tax-free investment growth
- tax on growth deferred until income withdrawn (then taxed at the marginal tax rate)
- tax-free switches (no deemed disposition)
- tax-free transfer the spouse upon death, if spouse is the beneficiary
page revision: 2, last edited: 27 Jul 2007 02:43