Registered Education Savings Plan
A Group RESP is a savings plan sponsored by the Government of Canada that encourages investing in a child’s post-secondary education. The growth of member contributions are tax sheltered and the Government of Canada also contributes a certain amount to the plan using the Canadian Education Savings Grant.
Specific to a Group RESP, members receive additional benefits by being a part of a Group Plan.
- Limits: No annual limits; Lifetime contribution limit of $50,000
- CESG (Canadian Education Savings Grant) will contribute 20% on the first $2,000 of annual RESP contributions per beneficiary; lifetime maximum of $7,200
- An RESP terminates after year 25 of inception, but $50,000 can be transferred to an RRSP under an Accumulated Income Payment (AIP)