Registered Education Savings Plan (RESP)

A Registered Education Savings Plan (RESP) is designed to help save for a child’s post-secondary education. Contributions are not tax deductible, but earnings accumulate tax-free while in the account. Under the Canada Education Savings Grant (CESG), the government also provides a matching contribution of 20% to plans for children under 18. Once enrolled for post-secondary education, the subscriber begins to withdraw the funds. The portion of the withdrawal which is a return of the original contribution is received tax free. The portion of the withdrawal that is accumulated income (which includes the grant) is included in the child’s income and taxed at his or her marginal rate — which usually means there is little or no tax to pay. (CRA-ARC)


For more information on RESPs please review the following options:

  • Features on an RESP
  • RESP Grants