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Build Your Child’s Education Fund with an RESP

Aug 30, 2020

With the cost of college and university increasing, registered education savings plans (RESPs) make sense for many parents. Although RESP contributions can’t be deducted from your taxes, they grow tax-free. Plus, qualifying withdrawals are treated as the student’s income, which is typically taxed at a much lower rate.

The federal government also provides incentives that add $1 for every $5 you put into an RESP (up to $500 a year and $7,200 total), with some provinces offering additional incentives. Total RESP contributions are capped at $50,000 per beneficiary.

Reach out to our team of Financial Advisors today to learn more about how an RESP will work for your family!