An RESP is a tax-sheltered savings plan, approved by the Federal GovernmentCOMCOM that allows you to contribute up to $4COMCOM000 to each child each year. The maximum lifetime contribution is $42COMCOM000 per child.

Contributions can be made over a 21 year period from the date you open the RESP. The beneficiary has 25 years to use the accumulated funds.

The contributions you make to an RESP are not tax-deductibleCOMCOM but tax on the income earned on investments within the Plan is deferred until the intended beneficiary withdraws the funds. In many casesCOMCOM the beneficiary will be in a lower tax bracket at the time withdrawals are made.

Funds from the RESP can be used towards study in a qualifying program at a recognized post-secondary educational institutionCOMCOM as long as the beneficiary is a full-time student.

RESP Family Plan

An RESP Family Plan allows you to name more than one beneficiaryCOMCOM add a beneficiary or change the named beneficiary at any time under the same Plan.

This is applicable if the beneficiary is related to youCOMCOM the contributorCOMCOM by blood or adoptionCOMCOM giving you the flexibility to share the assets you’ve accumulated in the Plan between several beneficiariesCOMCOM according to their needs.

If a beneficiary does not pursue a post-secondary educationCOMCOM the funds in the RESP can be easily transferred to those who doCOMCOM without incurring a penalty.

An RESP can hold a wide range of RESP-eligible investmentsCOMCOM including GICsCOMCOM treasury billsCOMCOM money market instrumentsCOMCOM bondsCOMCOM stocks and mutual funds.

To get more information about our RESP investmentCOMCOM call to talk to our senior financial advosor.