{"id":7562,"date":"2025-03-26T21:58:36","date_gmt":"2025-03-27T01:58:36","guid":{"rendered":"https:\/\/www.paulrioux.ca\/?page_id=7562\/"},"modified":"2026-06-01T14:11:37","modified_gmt":"2026-06-01T18:11:37","slug":"families-registered-education-savings-plan-resp","status":"publish","type":"page","link":"https:\/\/www.paulrioux.ca\/en\/guide\/families-registered-education-savings-plan-resp\/","title":{"rendered":"Registered education savings plans (RESPs)"},"content":{"rendered":"
[vc_row][vc_column][vc_column_text css=”.vc_custom_1743128479282{margin-bottom: 0px !important;}”]\n

Fiscal and Financial Planning Guide 2024-2025<\/h2>\n

Families > Registered education savings plans (RESPs)<\/h3>\n

The purpose of the RESP is to help families save for their children\u2019s post-secondary education.<\/p>\n

The RESP was created in 1974, but it became popular only in 1998 when the federal government began to pay grants on contributions made by parents and Quebec followed suit.<\/p>\n

Contributions<\/strong><\/p>\n

RESP contributions are not tax deductible and may be withdrawn tax free when the children begin their post-secondary education. It is a bit like a loan that parents make that will be repaid later.<\/p>\n

The lifetime contribution limit is $50,000 per child. Of this amount, $36,000 will be eligible for grants and $14,000 will be non-grantable.[\/vc_column_text][vc_single_image image=”7684″ img_size=”full” alignment=”center” css=””][vc_column_text css=”.vc_custom_1743128495599{margin-bottom: 0px !important;}”]Canada education savings grant (CESG)<\/strong><\/p>\n

The maximum annual contribution eligible for a grant is $2,500 for a maximum annual grant of $750.[\/vc_column_text][vc_single_image image=”7685″ img_size=”full” alignment=”center” css=””][vc_column_text css=”.vc_custom_1743128506914{margin-bottom: 0px !important;}”]The cumulative grant amount is limited to $36,000 for a total grant of $10,800 ($36,000 x 30%).[\/vc_column_text][vc_single_image image=”7686″ img_size=”full” alignment=”center” css=””][vc_column_text css=”.vc_custom_1743128520252{margin-bottom: 0px !important;}”]Accumulation example<\/strong><\/p>\n

If you start contributing annually $2,500 in the year of the child\u2019s birth, up to age 15 for a total of $36,000, the total accumulated value assuming a 5% return will be $73,379 at age 18 and $84,945 at age 17.[\/vc_column_text][vc_single_image image=”7687″ img_size=”full” alignment=”center” css=””][vc_column_text css=”.vc_custom_1743128549962{margin-bottom: 0px !important;}”]If you haven’t contributed for certain years, you can catch up on contributions eligible for a grant, but only one year at a time. For example, you could contribute $5,000 in a given year, i.e. $2,500 for the current year and $2,500 for a catch-up year, and receive a grant of $1,500 (2 x $750).<\/p>\n

Contributions are eligible for grants up to the age of 17 of the child.<\/p>\n

The child age limit to open an RESP and be eligible for grants is 15 years.<\/p>\n

Additional grant<\/strong><\/p>\n

The grant rate on the first $500 contribution may be higher if family income is less than $111,733 for an additional grant up to $150.<\/p>\n

Maximum cumulative subsidies will however remain at $10,800.<\/p>\n

Canada learning bond (CLB)<\/strong><\/p>\n

Families with a net family income of less than $55,867 can benefit from the $500 Canada Learning Bond (CLB) when the plan opens and $100 annually up to a maximum of $2,000.<\/p>\n

If is not necessary to contribute to be eligible for the Bond.[\/vc_column_text][vc_single_image image=”7688″ img_size=”full” alignment=”center” css=””][vc_single_image image=”7689″ img_size=”full” alignment=”center” css=””][vc_column_text css=”.vc_custom_1743128886654{margin-bottom: 0px !important;}”]Automatic enrolment in the CLB<\/strong><\/p>\n

To help low-income families, the federal government announced in the 2024 budget its intention to automatically open an RESP in 2028-2029 for eligible children if the family has not yet opened a plan before the age of 4, and to deposit Canada Learning Bonds into the plan.<\/p>\n

The federal government will deposit $800, i.e. $500 for the first year of eligibility and $300 for each of the three years up to age 4 ($100\/year).<\/p>\n

Thereafter, the federal government will contribute $100 per year until the age of 15, for a grand total of $2,000.<\/p>\n

According to the government, 130,000 children will receive the CLB each year as a result of automatic enrolment.<\/p>\n

Strategies during the accumulation period<\/strong><\/p>\n

Based on the previous rules, here are some planning ideas:<\/p>\n