December 12, 2013
Did you know that by saving in a registered education savings plan (RESP), the governments of Quebec and Canada offer up to $12,8001 per child in government grants? Did you know that you have until December 31 to maximize the government grants to which you are entitled?
As the holiday season heats up, here are a few helpful tips to maximize your return on investment:
1. Invest the maximum amount before the end of the year.
If you are in a position to do so, make sure you invest a total of $2,500 in your child’s RESP by December 31, 2013. By doing so, you will receive the maximum annual amount of government grants to which you are entitled for the current year. And why not take the holiday season as an opportunity to ask friends and relatives to contribute to your child’s RESP as a gift and, in the process, achieve your objective more easily?
2. Recover the grants from the contribution amounts carried forward.
If you have carried forward your annual contribution limit, bear in mind that you can recover the unclaimed government grants retroactively. The annual contribution limit of $2,500, which gives entitlement to the CESG2and the basic QESI3, is automatically carried forward to future years if this limit has not been reached. Consult your representative for assistance on recovering the grant amounts to which you are entitled on a retroactive basis. This can make a significant difference!
We also remind you that your child can receive grants from the provincial and federal governments until December 31 of the year during which your child turns 17. Additionally, in order to receive government grants, a minimum amount of $2,0004, or of $100 over a four-year period and before the year the child turns 16, must be invested.
For more information on government grant maximization, contact your scholarship plan representative or our Customer Service department at 1 877-710-RESP (7377).
Enjoy your investment!
1. The Canada Education Savings Grant (CESG) is equal to 20% to 40%. The annual CESG limit is set at $600, and the lifetime limit is set at $7,200 per beneficiary. The Quebec Education Savings Incentive (QESI) is equal to 10% to 20%. The annual QESI limit is set at $300, and the lifetime limit is set at $3,600 per beneficiary. The Canada Learning Bond (CLB) can reach up to $2,000, for a child born after December 31, 2003, from a family who receives the National Child Benefit Supplement.
2. The Canada Education Savings Grant (CESG).
3. The Quebec Education Savings Incentive (QESI).
4. These amounts must not have been withdrawn from the RESP before the end of the year during which the child turned 15.
What should we get the kids for Christmas? A tablet? The latest Xbox video game? The most recent Barbie collectible doll? These are the questions being asked by parents, uncles, aunts and grandparents, as the holiday season heats up. This begs the question: why not find a way to provide a lasting and essential present?
Written by: Universitas
Categories : RESPDecember 10, 2013