RESPs: Useful Information for Families
Registered education savings plans (RESPs) are as easy as getting your child a SIN card and starting to deposit money into their account. After 2007, we no longer have an annual deposit limit but we still have a lifetime limit of $50,000. This means the lifetime limit of the governments contribution can be up to $7,500. The cap for annual contributions that qualify for the 20 percent Canada Education Savings Grant (CESG) has increased from $2,000 to $2,500, resulting in an increase in the grant from $400 to $500. In sum, if parents can contribute $210.00/month for the year, the government will contribute $500 to your child’s account, at the end of the year.
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