RESP – Registered education saving plan
When your child’s secondary education costs are beyond your reach, a Registered Education Savings Plan will be an invaluable tool to you. An RESP combines flexibility, tax-deferred savings growth and direct government assistance to reach your education savings goals for your children.
You can set up a Registered Education Savings plan (RESP) for any “beneficiary” or as part of a family plan with multiple “beneficiaries”. The beneficiary simply must be a Canadian citizen and have a social insurance number (SIN).
An RESP has a maximum life of 35 years and contributions can only be made until the beneficiary reaches 31 years of age.
If the beneficiary of the Registered Education Savings plan (RESP) decides not to pursue post-secondary education another beneficiary can be assigned to accept the government grants or if the plan is 10 years old and the beneficiary has reached 21 years of age, the subscriber can withdraw the earnings. The withdrawn amount will be considered taxable income
To find out more about your options, Contact Zen Plus!