What is RESP plan?

Question

What is RESP plan?

Answer 1

Registered Education Savings Plan

A tax advantaged savings plan for children's future education in Canada.

Answer 2

A Registered Education Savings Plan (RESP) is an education savings plan that has been registered under the Income Tax Act and offers significant advantages to families saving for their child's future education expenses.

An RESP allows the growth income earned on contributions to remain tax deferred until your child enters a post-secondary program (within 25 years) and the money is withdrawn. A nominated child can be eligible for government grants up to $9,200.

  

Taxes are paid by the student when money is withdrawn to pay for education costs. Since most students have little or no income, the student pays little or no income tax. RESPs can fund most full-time or part-time trade, college or university as long as government requirements are met.

The Global Educational Trust Plan (Global Plan) is an Education Savings Plan that provides a disciplined approach to saving for a child’s education. Just a few dollars put aside weekly can make the difference of a lifetime. When registered†, the Global Plan offers tax-deferred growth as well as access to government grants up to $9,200 per child. The Global Plan combines many of the best features found in other individual and group scholarship plans.

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