RESPs

Prepare for your children’s pursuit of a higher education. Plan for their future now!

Types of RESPs

  • Individual Plan – only one beneficiary – no relationship requirement with subscriber(s)
  • Family Plan – one or more beneficiaries – each beneficiary must be connected to each subscriber by blood relationship (as defined in the Income Tax Act) or adoption.

Beneficiary

  • Individuals must have a Social Insurance Number and be a Canadian resident
  • In an Individual Plan, can be anyone, including the subscriber
  • In a Family Plan, each beneficiary must be connected to each subscriber by blood relationship or adoption and must be under 21 when the plan is entered into.
  • Only certain beneficiaries are eligible to replace another beneficiary in a Family Plan. The same rules apply to the Individual Plan in order to avoid tax and Canada Education Savings Grant  implications.

Subscriber

  • Can be joint with spouse/common-law partner
  • Must have a Social Insurance Number
  • In an Individual Plan, can be anyone, including the beneficiary
  • In a Family Plan, each subscriber must be connected to each beneficiary by blood relationship or adoption

Contributions

  • No annual contribution limit. The Canadian Education Savings Grant is paid on first $2500 per year.  If the child has unused contribution room, the grant will be paid on the first $5000.
  • Lifetime maximum contributions to all RESPs per beneficiary is $50,000.00 (excess contributions are not permitted and subject to penalty)
  • Contributions are not tax deductible however earnings are tax sheltered until withdrawn
  • Excess contributions which did not attract CESG in the year cannot be carried forward to attract CESG in a subsequent year

Canada Education Savings Grant

  • A great incentive to save
  • 20% on the contribution amount each year
  • If the beneficiary has unused CESG contribution room, additional grant can paid
  • Lifetime maximum per beneficiary - $7,200.00
  • CESG payments do not affect the annual and lifetime RESP contribution limits

Eligibility for Grant

  • Contributions must be made prior to the end of the year the beneficiary attains age 17 and the beneficiary must be a resident of Canada and have a Social Insurance Number.
  • RESP beneficiaries age 16 or 17 years are eligible only if:
    a minimum of $2,000 RESP contributions have been made and not withdrawn for that beneficiary before the end of the year the beneficiary attains 15 years,
  • a minimum of $100 in annual contributions have been made and not withdrawn for that beneficiary in any 4 years before the end of the year the beneficiary attains 15 years.

It is important to note that there are situations where the grant would have to be repaid. Contact your credit union for full details.

Educational Assistance Payments (EAP)

  • It is intended that all earnings in the RESP, as well as the CESG received, will be used for education-related costs at a qualifying post-secondary educational institution.
  • Earnings are sheltered from tax while in the RESP Plan. Both earnings and CESG will be taxable when withdrawn by the Beneficiary.
  • Withdrawal requests for EAPs must be accompanied by proof of enrolment in an approved education program.
  • EAPs are limited to $5,000 in the first 13 consecutive weeks of full time study in a qualifying educational program.

Canada Learning Bond

  • $500 from the Government of Canada to help you start your RESP.
  • $100 per year until yhour child turns 15 years of age.
  • To be eligible for this, your child must be born after December 31st, 2003 and you must receier the National Child Benefit Supplement.

Investment Options

A wide variety of investment options are available.  Speak to your Credit Union Investment Specialist for more details.

How can I set up an RESP?
There are a couple different ways you can set up an RESP with us. You can contact us to book an appointment in branch or you can start the process right away by using the MySmartFUTURE portal by clicking the link below.

Using MySmartFUTURE

MySmartFUTURE is a web portal that serves as an easy and convenient way to start the application process for government grants and programs that will help you save for your child’s education faster through an RESP.
  • Start the online CLB/CESG application using the MySmartFUTURE portal by visiting: https://www.mysmartfuture.org/atlantic OR https://www.moneducavenir.org/atlantic
  • The online application takes 10 minutes or less to complete and requires only basic personal information
  • Once you submit your application, we will call you to set up an appointment to come in branch to finish the application and open the RESP.
  • For your appointment in branch, you will need to bring your and your child’s Social Insurance Number (SIN) and sign the application to complete the CLB/CESG application. You will also need two pieces of government issues identification to open the RESP