Registered education savings plan (RESP)—the facts

Registered Education Savings Plans (RESPs): The facts

Everything you need to know about RESPs

A registered education savings plan (RESP) is a tax-assisted plan that can help save money for post-secondary education.

Contributions to an RESP aren’t tax deductible, but the money in the plan will grow tax deferred until you withdraw it for a post-secondary educational program. In addition, there are grants and incentives available from the Government of Canada and certain provinces to help build education savings.

This guide gives you information to help understand the technical details of RESPs, and offers tips on what to look for and how to maximize these plans. Knowing the benefits and rules of RESPs from the first contribution to the final withdrawal can pay for post-secondary education tax efficiently. Some of the information includes:

  • what an RESP is, how it works, and why you would want one
  • different types of RESPs — individual, family, and group plans
  • RESP contribution limits and tax implications
  • government grants and incentives, including the Canada Education Savings Grant (CESG)
  • investment options
  • payment and withdrawals from an RESP, including educational assistance payments (EAPs)
... and much more!

Helping Canadians make informed decisions

The cost of post-secondary education is on the rise and many Canadians want to save for their children’s education to help ease the financial burden that comes when their children continue education outside the public school system. An RESP was designed for just this purpose, to help parents save for their child’s education on a tax-deferred basis and even receive additional contributions from the government through the CESG.

You may have a lot of questions when it comes to saving for your child’s education and the benefits of RESPs. Work with your advisor to determine your goals, and they can help you set up an RESP and budget to help you achieve those goals.

Advisors, share this guide with your clients to help answer any questions and assist with RESP savings goals.


Tax, Retirement & Estate Planning Services Team

Tax, Retirement & Estate Planning Services Team

Manulife Investment Management

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