RESP - A Good Time to Review Education Savings

Submitted by on Mon, 09/28/2026 - 14:07

 

RESP – Registered education savings plans

 

What are RESPs?

RESPs are to education what RRSPs are for retirement. They let you put money aside for your child’s post-secondary education. In this way, you give your child the greatest gift: an opportunity to achieve a dream career.

 

How do RESPs work?

1. Contribute

You begin to save early by contributing to your child’s Registered Education Savings Plan (RESP) and benefiting from generous government grants.

*Available if you have already opened an RESP (My Education or My Education+).

2. Accrue

Together, your regular contributions and government grants generate returns. Your Registered Education Savings Plan (RESP) grows tax-free.

3. Reap

You get your contributions back to fund your child’s education. your child receives the grants and the total return from the registered education savings plan (resp).

 

The main advantages of an RESP

  • Accrue more thanks to government grants
  • Recover the money you invest at a pace that suits you
  • No loss if your child does not go on to post-secondary education
  • Opening an RESP 100% online
 
 

Our education-savings product

More savings. More flexibility. More possibilities.
 

Available plans

Individual

Blood relationship or adoption

Family

  • Possibility of designation more than one child to the plan.
  • Blood relationship or adoption is required

 

Choice of investments

Depending on your investment profile and financial goals, you can invest in a range of attractive investments:

  • Segregated funds
  • High-interest savings account with a 100% capital guarantee

 

 

Advantages


Get more thanks to government grants

To encourage education savings, the Government of Canada and some provincial governments add to the amount you contribute to your child’s RESP each year.

Combined with your regular contributions, this generous government aid, which is deposited into your RESP, goes a long way toward growing your savings.

Depending on your family income, you may be entitled to an additional grant. Your contributions, the grants, and the returns grow tax-free until withdrawal.

 

Federal government

Grants offered by the federal government    Canada Education Savings Grant (CESG)    Canada Learning Bond (CLB)  
Annual grant
(% of contributions)		20%

 

 

  Limit of $2,000 per child for eligible families  

Annual limit
(per child)		$500
Lifetime maximum
(per child)		$7,200
Additional grant
(% of contributions)		  10% or 20% of the first $500 invested each year  

Provincial governments

Grants offered by provincial governments    Quebec Education Savings Incentive (QESI)    British Columbia Training and Education Savings Grant (BCTESG)  
Annual grant
(% of contributions)		10%

 

 

  Single payment of $1,200 (Lifetime maximum)  

Annual limit
(per child)		$250
Lifetime maximum
(per child)		$3,600
Additional grant
(% of contributions)		  10% or 20% of the first $500 invested each year  
 
 
 

Withdraw the money at your own pace

When your child goes on to post-secondary education, you get your money back, and you do not have to pay tax on the amounts you receive.

In the meantime, your child receives the grant money and the returns earned on the entire RESP account in the form of Education Assistance Payments. Since the tax rate is generally lower for students, the amount of tax to be paid on the money received is often minimal.

 

No loss if your child does not use it

If your child does not go on to post-secondary education, you can :

  • Designate another child in the family
  • Withdraw your contributions tax-free
  • Transfer your accrued investment income to your RRSP under certain conditions

 

 

Frequently Asked Questions

 

Who can contribute to an RESP?

An individual RESP can be opened by anyone (parent, grandparent, tutor, friend, etc.) who wants to save for a child’s postsecondary education.

They must be over 18 years old, reside in Canada and have a social insurance number.

 

What is the maximum RESP contribution?

The overall contribution limit for each RESP beneficiary is $50,000. Although there is no annual limit on contributions, contributions in excess of $2,500 per year are not eligible for grants.

 

What are the taxes or penalties associated with early or late withdrawal of RESP funds?

You can access your capital at any time, with the option to withdraw your contributions in part or in full with no tax implications.

However, if you withdraw contribution money before your child begins post-secondary studies, you must repay the government grants received on the money withdrawn. Fees may be charged for withdrawals.

 

What is the process for withdrawing money from an RESP?

A request must be made to withdraw funds from a registered education savings plan for post-secondary education. This request may be submitted as soon as the beneficiary is enrolled in the current or upcoming semester, and at the latest within 6 months following the end of the semester.

To process a request, a valid proof of enrolment must be provided. It must include the following information:

  • Student's full name
  • Name of the educational institution (with official logo or letterhead)
  • Enrolment status (full-time or part-time)
  • Academic term (Fall, Winter, etc.)

Examples of valid proof of enrolment: Registrar's confirmation or Term schedule or Tuition invoice/fee statement

 

Are RESP contributions tax deductible?

Contributions you make to an RESP are not deductible from your taxable income. However, you will receive a government grant that will increase the value of your RESP.

 

What are the eligible educational institutions where I can use the money saved in an RESP?

The RESP can be used to finance various types of full-time or part-time educational and vocational training, such as:

  • Post-secondary studies (college and university)
  • Studies in an eligible trade or business school

The money saved in an RESP can be used for living expenses such as housing, school supplies and food while at school.

 

What criteria must be met to use an RESP?

The educational institution must be an accredited institution and the educational program must last a certain number of weeks, and include a certain number of hours per week.

Contact your advisor to learn more.

 

Do I need a separate RESP for each child?

No. iA Financial Group offers two types of plans: individual and family. If you choose the family plan, you can add one or more beneficiaries, under certain conditions.

Ask your advisor about the different terms for each type of plan.

 

Is it possible to use unused rights from previous years?

Yes. Unused contribution room can be carried forward a maximum of one year at a time.

For some grants, unused room accumulates from the time the plan is opened. This means that if no contributions are paid into an RESP in a given year, or if contributions are lower than the limit established by the government, grant room can be carried over to subsequent years for so long as the child is eligible.

 

Is it possible to choose the investments offered for the RESP?

Yes. There are several investment options available. You can select your investments based on your risk tolerance. An advisor can help you analyze your investor profile.

 

Is an RESP considered an asset when calculating student financial assistance?

No. Funds saved in an RESP are not considered income when the beneficiary applies for student financial assistance.

Note that Education Assistance Payments (EAPs) are taxable and are added to your child's income. This is an advantage, because students often have a modest income and therefore pay little or no income tax.

with the child is not required.

 

 

Source: https://ia.ca/resp

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