RESP Questions & Answers

Who can contribute to RESPs?

Parents, grandparents, aunts and uncles, other family members and anyone else who wants to contribute to a child's education can participate, subject to the annual and lifetime limits
 

How is a RESP invested?

We offer a variety of investment options that can help you maximize your contributions. Ask Creative Arts to recommend an investment strategy. 

How much can I invest?

The lifetime RESP contribution limit is $50,000 per child.  There is no annual maximum contribution limit.  Contributions can be made until the child turns 31.

What Government Grants Are Available?

For every qualifying contribution of $2,500 or more, a Canada Education Savings Grant (CESG) is available from the federal government to supplement your RESP contributions.  The grant is limited to $500 per year, per child.  Unused grant room from previous years would allow the CESG to reach as high as $1,000 per year, per child.  The CESG is payable for any year up to and including the year the child turns 17.  The maximum lifetime CESG grant per child is $7,200.

What happens if I can't take advantage of the full Canada Education Savings Grant in a given year?

Grant contribution room can be carried forward to future years and can be used up to an annual contribution of $4,000.
 

What happens if my child does not attend post-secondary education?

If your child decides not to attend post-secondary education, you have the following options:

• You may be able to change the beneficiary
• You can transfer up to $50,000 of the RESP funds to your RRSP if you have the contribution room for that year, including any room you have carried forward.
• If you don’t have the RRSP contribution room, you will have to pay tax on the RESP growth and there will be a government clawback on the grant.