Registered Education Savings Plan (RESP)
Start saving for a child’s post-secondary education today. Open an RESP.
An RESP is a registered account that helps you save for a child’s education after high school. Funds can be used to pay for full- or part-time studies, including:
- An apprenticeship program
- CEGEP (general or vocational colleges in Quebec)
- College
- Trade school
- University
Benefits of an RESP
Tax-deferred growth
Your earnings are not taxed over the life of the plan. When the funds are taken out, they’re taxed to the student, who will likely pay little or no taxes.
Government grants
Through the Canada Education Savings Grant (CESG), the federal government may match your contributions by up 20% to maximum of $500 per child, per year until they turn 17. The lifetime maximum is $7,200. Other incentives include the Canada Learning Bond and provincial grants.
Not just for tuition
RESPs can be used to cover tuition plus other eligible education-related expenses such as books, rent and transportation.
Any Canadian resident with a social insurance number who is 18 years of age (or the age of majority in your province or territory of residence) can open an RESP, including:
- Parents
- Guardians
- Grandparents
- Relatives
- Friends
Adults can also open an RESP for themselves.
Who qualifies?
Students must:
- Be a Canadian resident
- Have a social insurance number
Types of RESPs
This type of RESP is meant for one child. They don’t have to be related by blood or adoption. Adults can open this type of RESP for themselves.
This type of RESP is meant for more than one child. They must be related by blood or adoption. Examples include your children, stepchildren, grandchildren and siblings. The advantage of a family plan is that you can decide how to share the funds among the children. And if one child decides not to pursue a post-secondary education, the full value of their fund can be directed to another child.
This type of RESP is meant for one child. They don’t have to be related by blood or adoption. Your contributions go to a shared pool of earnings. How much a child gets depends on how much money is in the group plan, and the number of students of the same age who are in school that year. Group plans tend to have more rules, and payment schedule are usually fixed.
You can boost your savings in an RESP with income-generating investment products. The types of products you choose depend on your risk tolerance and timeline.
Explore our investment products
A straightforward way to invest in professionally managed funds that provide diversification and growth potential.
Contribution limit
The lifetime contribution limit is $50,000 per child. But there’s no annual limit, meaning you can save at your own pace. Contributions can be made up until 31 years after the RESP was first opened.
Penalties for over contributing
Any contributions over the lifetime limit are subject to a 1%-per-month penalty tax until the excess contributions are withdrawn.
Withdrawing funds from an RESP
Funds from an RESP can be taken out as soon as the child is enrolled in a qualifying post-secondary educational institution. There are two types of withdrawals:
- Withdrawals of the contributions, which are not taxed
- Withdrawals of the investment earnings and government grants, which are taxed as the student’s income – these are called Educational Assistance Payments (EAPs)
Maximum withdrawal amounts
There are no limits when it comes to withdrawing contributions. For EAPs, during the first 13 weeks of schooling, full-time students are capped at $8,000, and part-time students have a limit of $4,000. After 13 weeks, students can take out any amount of EAP.
Closing the account
Your RESP account expires at the end of the 35th year it was opened. So, if a child wants to travel or take a break after high school, there’s no rush to use the funds right away. If they decide not to pursue a post-secondary education, you can close your individual plan and get a refund of contributions, tax free. However, you will forfeit all the government grants the plan received. For individual RESPs that have been open for 10 or more years, you can transfer your investment earnings to a Registered Retirement Savings Plan (RRSP) if you have contribution room. If not, you can withdraw the earnings as an Accumulated Income Payment (AIP), which will be subject to regular income tax and an additional 20% tax. You may also be eligible to transfer a portion of the closed RESP money to a sibling’s plan. For group RESPs, investment earnings must remain in the plan for other plan members to use.
Learn how to reach your savings goals faster with our five-step plan.
Learn how investing early compares with saving money in cash.
Discover the power of investing earlyReady to grow your wealth?
Connect with us to start investing.
Not all products are available in all provinces.
In the province of Quebec, the authorized representatives are Financial Security Advisors who have been duly certified by the Autorité des marchés financiers.
Mutual funds are offered through Co-operators Financial Investment Services Inc. to Canadian residents except those in Quebec and the territories. Segregated funds and annuities are underwritten and administered by Co-operators Life Insurance Company.
Co-operators Life Insurance Company and Co-operators Financial Investment Services Inc. are committed to protecting the privacy, confidentiality, accuracy and security of the personal information that we collect, use, retain and disclose in the course of conducting our business. Please visit our privacy policy for more information.
Co-operators® is a registered trademark of The Co-operators Group Limited.