Belmont Village Financial Group RESP Registered Education Savings Plan Wealth Management

Registered Education Savings Plan (RESP)

What is a Registered Education Savings Plan?

A Registered Education Savings Plan (RESP) is a tax-sheltered plan that can help you save for a child’s post-secondary education. With the high cost of education, many parents, grandparents and other family and friends are recognizing the need to save well before the expenses become a reality.

An RESP is a contract between an individual (the subscriber) and a person or organization (the promoter).

Under the contract, the subscriber names one or more beneficiaries (the future student(s)) and agrees to make contributions for them, and the promoter agrees to pay educational assistance payments (EAPs) to the beneficiaries

Opening an RESP 

An RESP can be set up for any “beneficiary,” including your children, grandchildren, nieces, nephews or family friends. The “subscriber” to the plan is the person who opens the plan and makes contributions to it. The subscriber also designates the beneficiaries who are to use the funds for their post-secondary education. Each beneficiary must be a Canadian resident and have a social insurance number (SIN) which can be obtained from a Service Canada Centre ( ).

Who can contribute? 

A subscriber can contribute any amount to an RESP, subject to a lifetime contribution limit of $50,000 per beneficiary. Although you cannot deduct the contributions made to an RESP from your taxable income, the subsequent investment earnings on RESP contributions are tax-deferred. If the plan earnings are withdrawn to cover qualifying post-secondary education expenses, they are taxable to the beneficiary, not to the subscriber. You can contribute to an RESP for up to 31 years, and the plan can remain open for a maximum of 35 years.

Contact us today to discuss your RESP options at 519-744-3020 or email

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