Chris Walker Insurance Services

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to remain tax deferred until your child enters a post-secondary program (within 35 years) and the money is withdrawn. A nominated child can be eligible for the Canada Education Savings Grant (up to $7,200) and the Canada Learning Bond (up to $2,000) — that's up to $9,200 in government grants.

Taxes are paid by the student when money is withdrawn to pay for education costs.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 for each child. The Global Plan combines many of the best features found in other individual and group scholarship plans.

The CESG adds up to 20% ($500 maximum) to your annual contribution to a Registered Education Savings Plan (RESP) per child annually, to a lifetime maximum of $7,200 or when the child turns 17 years old, whichever comes first.

Additional CESG 
Families with net income less than $37,885**may be eligible to receive up to $100 more CESG yearly for each of their children. The amounts contributed, up to the first $500 yearly to an RESP, may receive 20% of additional CESG (over the basic 20% CESG).
Families with a net income between $37,885 and $75,769** may be eligible to receive 10% additonal CESG, up to the first $500 yearly (above the basic 20% CESG). 

Children born on or after January 1, 2004 can be eligible for the CLB when the family receives the National Child Benefit (NCB) Supplement. Families can receive $500 for each child’s RESP in the first year they qualify for the benefit and may be eligible for $100 for each subsequent qualifying year to age 15. These funds can contribute up to $2,000 for an eligible child’s RESP.

Alberta Centennial Education 
Savings Plan (ACES) 
Children born to or adopted by an Alberta family on or after January 1, 2005 are eligible to receive a one-time ACES grant of $500. 
Subsequent contributions of $100 are also available for any resident children attending school in Alberta at ages 8, 11 and 14. Children do not have to receive the one-time grant to qualify for subsequent $100 contribution. These grants require a minimum $100 invested in an RESP within one year prior to application. 

Quebec Education Savings Incentive 
The Québec  Education  Savings Incentive (QESI) is a tax  credit that encourages Québec families to start saving early for their children's and grandchildren's  education. The  tax incentive (effective February 21, 2007) adds   up to  10% ($250 maximum) to your annual RESP contribution per child up to a lifetime maximum $3,600. 

Income earned in the Global Plan grows tax deferred. 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.