What is a RESP?
A RESP is a government-sponsored plan designed to help you with long-term savings toward your child's post-secondary education. RESP funds can be used to help pay for your child's tuition, books and living expenses.

What is the Canada Education Savings Grant (CESG)?
Your child can draw Educational Assistance Payments (EAPs), which are comprised of earnings and the CESG, from the RESP.  These withdrawals are made in the name of the beneficiary (your child) during the time they attend a qualifying post-secondary institution.  This allows your child to pay little, if any, income tax on the earnings of the RESP.

Who can open a RESP?
Anyone can open a RESP by making contributions to the plan on behalf of a designated beneficiary, for example your children or grandchildren.

What if my child decides not to attend a post-secondary institution?
If your child does not attend a post-secondary institution, you have the flexibility to choose from the following options*:
o Change the named beneficiary;
o Transfer funds to another RESP;
o Collapse the plan.

*certain conditions and penalties may apply

Planning now for your child's post-secondary education will give your family more choices in the future.
Community Savings offers a variety of investment products to increase the earning power of your RESP. Talk to us today, to start saving for your child's future.

What types of RESP plans are available?
Individual plans may be established for one child, or family plans are available for several children in a family.

How much may I contribute?
RESP contributions are limited to 4,000 per year, to a lifetime limit of $42,000 for each child.

Do I receive a tax deduction for RESP contributions?
The contributions are not tax deductible. However, the income earned on the deposits compounds tax-free. The CESG also earns tax-free income within the plan. When your child is ready for post-secondary education, the income is taxed in their name. As a student, they will usually pay little or no tax on the income as students generally have a lower marginal tax rate.