RESP Legislation Disclosure
Registered Education Savings Plan (RESP)
An RESP is a government-approved plan for the purpose of providing post-secondary education funding for a beneficiary. Income earned within the plan is not taxed until it is withdrawn.
The Canada Education Savings Program allows eligible RESP beneficiaries to receive Canada Education Savings Grant (CESG) monies based on annual contributions paid into the plan. The government will contribute 20% annually on the first $2,500 deposited into an RESP for an eligible child up to the end of the year he/she attain 17 years of age (some exceptions apply). Depending on the family net income, additional CESG of up to 20% annually on the first $500 deposited into an RESP may also be available to eligible beneficiaries.
The Alberta Centennial Education Savings Plan (Alberta Grant) allows eligible RESP beneficiaries to receive Alberta Grant. A $500 inital Alberta Grant is available to eligible children born on or after 2004. A $100 subsequent Alberta Grant is available to eligible children at ages 8, 11, and 14.
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