Registered Education Savings Plan (RESP)
Save for a child's post-secondary education with grants and tax-deferred growth in the plan.
RESPs help families save for post-secondary education. Government grants add to savings when eligibility criteria are met. Payments to students for school costs can be structured as Educational Assistance Payments (EAPs) with specific tax treatment.
Rules for plan termination, unused grants, and transfers are detailed—use CRA and Employment and Social Development Canada resources.
- Open an RESP with a promoter (bank, group plan, etc.)Often required
Subscriber names beneficiary and plan type (family, individual, group).
- Apply for Canada Education Savings Grant (CESG) and provincial grants
Forms and promoter processes vary by province.
- Proof of identity for beneficiaryOften required
SIN and birth certificate or acceptable ID per promoter.
- CESG matches a portion of contributions (subject to annual and lifetime maximums).
- Earnings in the plan are not taxed until paid out as EAPs to the student (taxed in student's hands, often low bracket).
- AIP withdrawals if the plan ends without education use may be taxable plus possible penalties—rules are strict.
- Beneficiary must be a Canadian resident with a SIN for most grants.
- Contributions are not deductible for the subscriber.
- Family plans have rules on which beneficiaries can share grants—read CRA guidance.
Disclaimer
This guide is for general information only. Tax and benefit rules change. Always confirm current requirements with the Canada Revenue Agency, Service Canada, or a qualified financial or tax professional before making decisions.