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Maximize Your RESP Grants Before Year’s End

Written by: Kaleido

September 29, 2021

(Updated - 1st published November 19, 2018)

Did you know the Registered Education Savings Plan (RESP) entitles you to generous grants from the government? Every Canadian child with an RESP is entitled to federal grant money and in Quebec, our children also benefit from a provincial incentive. Both levels of government offer a combined total of up to $12,8001 per child to supplement your contributions!

You have until December 31st to maximize your children’s grants for the year! Here are a few helpful tips to get the most out of your investment, without leaving any money on the table:

Top up your RESP contributions before the end of the year

When you have the means, it’s always a good move to invest $2,500 in your child’s RESP by December 31st to receive the maximum annual grant amounts to which your child is entitled.

Pro tip: The upcoming holiday season offers a great opportunity to ask friends and family to chip in for your little ones’ RESPs! This could help you achieve your maximization objective more easily.

Recover unclaimed grants from past years

The annual contribution limit attracting grants is $2,500. If you haven’t invested this amount every year since your child’s birth, it’s safe to say you can recover unused entitlements2 since CESG3 and QESI4 grant room is automatically carried forward from year to year when you don’t invest $2,500 annually. Speak to your scholarship plan representative to learn how you can claim your grant entitlements retroactively. This could make all the difference!

 

Want to know how much you could recover?

Contact your scholarship plan representative directly or our Customer Service at 1-877-710-7377. We’ll gladly give you all the information you need on government grant maximization.

Legal Notes

1. Canada Education Savings Grant (CESG) from 20% to 40% and Quebec Education Savings Incentive (QESI) from 10% to 20%. Based on adjusted family net income. The annual limit is set at $600 for the CESG and at $300 for the QESI. The lifetime limit per beneficiary is set at $7,200 for the CESG and at $3,600 for the QESI. The Canada Learning Bond (CLB) is up to $2,000 per beneficiary and is offered for children born after December 31, 2003, from families who meet the financial criteria. Certain conditions apply; see our prospectus at kaleido.ca.

2. Up to $5,000 yearly.

3. The Canada Education Savings Grant (CESG).

4. The Quebec Education Savings Incentive (QESI).