Registered Education Savings Plan - RESP

A savings plan sponsored by the Canadian government that encourages investing in a child's future post-secondary education. Subscribers to an RESP make contributions that build up tax-free earnings - tax-free because subscribers cannot deduct payments made to the plan from their income. The government contributes a certain amount to plans for children under 18 under the Canada Education Savings Grant .



|||Payments are made by a contributor on behalf of a beneficiary . once the child is in a post-secondary institution, he or she will receive educational assistance payments . These EAPs count as income for the child . If the beneficiary doesn't receive payments - either by choice of the contributor or because the beneficiary does not attend a post-secondary institution, the contributor will receive the amount in the RESP back tax-free.





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