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.