Registered Education Savings Plan (RESP)
When you contribute to an RESP, you become eligible for government grants that can amount to thousands of dollars of free money towards a child’s post-secondary education.
RESP Facts
- As long as the investment earnings stay in the plan, there is no tax liability.
- If you are planning to open up a RESP for a child under the age of 17, the federal government will also put money into the RESP. It is invested as a grant or a bond. The provincial government may also contribute in some provinces.
- Some plans will require that a monthly or annual contribution be made. Some will allow for money to be put in whenever. The maximum limit per child for the lifetime of the plan is CAD$50,000.
- Do note that while you can withdraw the contributions tax free from the plan at any time, the contributions are not tax deductible.
- Gurinder Chahal Insurance Specialist can help you navigate through the wide range of investment options available. Examples include:
- Bonds
- Stocks
- Mutual Funds
- GICs
Some plans will allow you to take control of how you would like to invest your savings and other plans will invest on your behalf.
- When your child is enrolled in a qualifying education program, specified education program, university or college or they can take money out of RESP.
- RESP has an expiry date. It is eligible for 36 years. If there are beneficiaries eligible for the disability tax credit, then, the plan can be open for up to 40 years.
RESP Plans Offered By Gurinder Chahal Insurance Specialist
Proof must be submitted by Super Visa applicants that they have purchased private medical Insurance.
Required:
- Individual plan
- Family plan
- Group plan
Each of these plans have a different structure and based on our consultation with you, we will be able to determine the best plan for you and your family.
20% Govt grant
+
15% diploma bonus
