WealthRESP — Registered Education Savings Plan (Canada)
The RESP (Registered Education Savings Plan) lets you save for a child's post-secondary education. Its edge: the government adds the Canada Education Savings Grant (CESG) of 20% on your contributions, and investments grow tax-sheltered.
Key RESP features
- 20% CESG on contributions, up to $500 per year (max $7,200 lifetime per child)
- Lifetime contribution limit: $50,000 per beneficiary
- Tax-sheltered growth until withdrawal
- Withdrawals (EAPs) are taxed in the student's hands — often little or no tax
- Canada Learning Bond (CLB) for lower-income families
- No mandatory annual contribution
How the grant works
For every $2,500 contributed in a year, you receive $500 of CESG (20%). Unused grant room carries forward, but the maximum is $1,000 of CESG per year when catching up one year.
What if the child doesn't pursue studies?
Your contributions come back to you tax-free. The CESG is returned to the government, and earnings can be transferred to your RRSP (under conditions) or withdrawn with tax and a penalty.
Frequently asked questions
What is the RESP limit?
$50,000 lifetime contributions per beneficiary. No annual cap, but the CESG is maximized at $2,500/yr of contributions.
Is the CESG taxable?
The grant and earnings are taxed in the student's hands on withdrawal (EAP), so usually little or no tax.
Can I open an RESP for several children?
Yes, with a family plan. The $50,000 limit and CESG apply per beneficiary.
Try WealthWise for free
100% Canadian tool, free to start. No card required.
Try WealthWise for free →