What are the restrictions and limitations of an RESP?

September 8, 2017 ATB Financial

What are the restrictions and limitations of an RESP?

Like any product offering, RESPs have some restrictions and limitations. Here are the main points at a glance.
 

Contribution dollar amount limitations 

There is no yearly contribution dollar amount limit, but there is a lifetime contribution dollar amount limit of $50,000 per child.

Contributions time limitations

Contributions to an RESP can be made up to 31 years after it is first opened.

Government grant dollar amount limitations

Through the Canada Education Savings Grant the government will contribute 20 cents on every dollar that you invest up to a yearly maximum of $500, and a lifetime maximum of $7200. Some families will also qualify for an additional amount of Canada Education Savings Grant, or the Canada Learning bond which can pay up to an additional $2000 for each child.

Government grant age limitations

17 is the maximum age for grant eligibility.

Government grant time limitations

Grant room carries forward every year that it is not fulfilled. So if you’re not able to contribute $2500 per year, you can make catch up payments later on.

Beneficiary (child) restrictions

If you want to open an RESP for a friend or a neighbour, it must be an individual plan. Parents who have, or plan to have, more than one child should open a family plan​ RESP.

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