How Contributing To, Withdrawing From & Investing in RESPs Affects You
Registered Education Savings Plans are the best way to save for your child’s education. While the contributions themselves are not tax-deductible, the federal government will contribute an extra 20% of your yearly contributions up to $500.00 per year at minimum, depending on your family income. You can start contributing to an RESP for your child as soon as they have a Social Insurance Number. However, the latest date to start contributions that qualify for grant payments is the end of the calendar year before your child turns 15.
When withdrawing from an RESP, it’s important to consider your child’s taxable income. The contributions you have made may be withdrawn tax-free for education purposes, but the grant payments and return on investments will be included on your child’s tax return.
Please contact us using the “Book and Appointment” form below to discuss any questions about opening or withdrawing from RESPs.