Limited Time. Unlimited Possibilities.
Most people are aware of the RRSP deadline come tax time, but did you know about the end-of-year deadline for your RESP?
Every year, the government provides a Canada Education Savings Grant (CESG) equal to 20% of the first $2,500 annual RESP contributions per child, or $500 annually to a lifetime maximum of $7,200. That means every contribution you make to your RESP is earning 20%. Depending on your financial situation and location, the Canada Learning Bond, ACES (Alberta) and QESI (Quebec) may enhance the value of your RESP even further.
If you haven’t been able to save $2,500 in your RESP each year there is good news – each qualified child can carry forward unused CESG room for use in future years. However, you may not be aware of the time limits. Although there is no annual contribution limit, the maximum annual CESG payment is $1,000 per calendar year, which ends on December 31.
This means, in order to take full advantage of the grant, it’s best to maximize your RESP contributions when your child is young. Get your annual CESG or catch up with unused grant money. And now is a great time with our limited time offer.