Human Resources and Skills Development Canada
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Human Resources and Skills Development Canada

www.hrsdc.gc.ca

Registered Education Savings Plan - Frequently Asked Questions

  1. How much can I put into an RESP?
  2. How is an RESP taxed (assuming the child continues education after high school)?
  3. What do I need to do to open an RESP?
  4. How do I get help or more information about RESPs?

1. How much can I put into an RESP?

Up to $50,000 for each child named in one or more RESPs. Although there are no annual limits on RESP contributions, the Canada Education Savings Grant will only be paid on the first $2,500 of contributions made every year.

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2. How is an RESP taxed (assuming the child continues education after high school)?

  • Your money grows tax-free while it is in your RESP.
  • You don't get a tax deduction for the money you put into an RESP.
  • The money that your investment earns while it is in the RESP won't be taxed until money is taken out to pay for your child's education.
  • Money paid out of the RESP as an Educational Assistance Payment is taxed in the hands of the student. Since many students have little or no other income, they can usually withdraw the money tax-free.
  • The money that you have put in the RESP is returned to you, tax-free.

For more information, please phone the Canada Revenue Agency at 1-800-959-8281. Or visit the Educational Assistance Payments section of the Canada Revenue Agency's Web site.

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3. What do I need to do to open an RESP?

It’s not difficult! Just follow these 2 simple steps.

  1. Get a Social Insurance Number (SIN).
    • You must have one for yourself and one for your child.
    • There's no fee. However, certain documents, such as a birth certificate, are required.
  2. Choose an RESP provider that best suits your needs. RESP providers include:
    • most financial institutions, such as banks or credit unions
    • group plan dealers, and
    • certified financial planners.

See a list of RESP Providers.

Note: It is very important to choose the right type of RESP plan you want to open.

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4. How do I get help or more information about RESPs?

For more information about RESPs call 1 800 O-Canada (1-800-622-6232). If you have a speech or hearing impairment, use the TTY number: 1-800-926-9105.

CanLearn.ca also provides additional information about RESPs.

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Date Modified:
2011-11-29