RESP
Safe Insure provides expert guidance on Registered Education Savings Plans (RESP), helping clients secure their children’s educational future with flexible, tax-efficient savings options.
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RESP Service
An RESP is an education savings plan that you establish, that we register, and to which you or family members can contribute. RESP contributions grow tax-free and can help fund your child’s post-secondary education.
Benefits of RESP Contributions
Tax-Free Growth
The money in a RESP grows tax-free, meaning you won’t pay taxes on any income earned within the plan. This allows your savings to accumulate faster, increasing the funds available for your child’s education.
Government Grants
The Canadian government provides free grants, such as the Canada Education Savings Grant (CESG), which matches a portion of your contributions to help your savings grow even faster.
Flexible Contribution Options
There is no annual limit on RESP contributions, giving you the flexibility to save at your own pace. However, there is a lifetime contribution limit of $50,000 per child, allowing for significant growth potential over time.
Government Grants and Bonds
Canada Education Savings Grant (CESG)
Available to all eligible RESP beneficiaries, with the government contributing up to 20% of the first $2,500 you contribute each year, up to a lifetime maximum of $7,200 per child.
Canada Learning Bond (CLB)
Designed for low-income families and provides up to $2,000 per eligible child without requiring the family to contribute their own funds to the RESP. The CLB can give a much-needed boost to families starting a RESP later or who may not have the means for regular contributions.
Why Choose Safe Insure for Your RESP?
We bring years of experience and a deep understanding of the RESP program, ensuring you make the most of your savings while minimising taxes and fees.
- 1. Personalised Advice: Our experts offer tailored advice to help you determine the best contribution strategy based on your financial situation, maximising both your savings and potential government grants.
- 2. Full-Service Management: We handle all aspects of the RESP setup, registration, and ongoing management, ensuring your plan remains compliant with all government requirements.
- 3. Dedicated Support for Withdrawals: We provide guidance on making tax-efficient withdrawals, helping you access the funds without the hassle, when it’s time for your child to begin their post-secondary education,
- 4. Educational Savings Strategies Beyond RESPs: Our information on other educational savings strategies help families looking for a broader approach to financial planning for education.
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Frequently Asked Questions
An RESP is a tax-advantaged savings plan designed to help parents save for their child’s post-secondary education. Contributions grow tax-free, and government grants may be added.
Parents, guardians, family members, or friends can open an RESP for a child, who will be the beneficiary.
There is no annual limit, but the lifetime contribution limit per beneficiary is $50,000.
The most common grant is the Canada Education Savings Grant (CESG), which can provide up to $7,200 over the lifetime of the RESP.
Contributions are tax-free when withdrawn, but investment earnings and grants are taxed in the hands of the student, who typically pays little to no tax due to their lower income.
The funds can be used to cover a wide range of educational costs, including tuition, textbooks, housing, and other school-related expenses. This flexibility helps families use RESP savings to manage various aspects of post-secondary education.
The plan can stay open for up to 36 years, giving the beneficiary ample time to decide on pursuing post-secondary education. This extended time frame offers flexibility for families who may want to keep the RESP open until the child or another eligible beneficiary is ready for school.
Yes, multiple RESPs can be opened for a single beneficiary, allowing parents, grandparents, or other family members to each establish their own RESP. However, the lifetime contribution limit of $50,000 per beneficiary remains the same across all RESPs for that child.
Getting started with an RESP at Safe Insure is easy. Follow these steps to get started:
- Schedule a consultation with one of our advisors to discuss your education savings goals.
- We’ll help you choose and set up the most suitable RESP, manage the registration, and provide ongoing support.
- Our experts will assist you with contributions, maximising grants, and planning tax-efficient withdrawals.
We provide clients with online access to their RESP accounts, where you can track contributions, investment performance, and available government grants. Our team is also available for regular check-ins to ensure your RESP remains aligned with your educational savings goals.
