KEY TO YOUR RESP
Written By: Andrea Benaim, CA
www.andreabenaim.com
If you want your child to have the same educational resources that you did, or maybe wish you had, you will want to consider a registered education savings plan (RESP). By starting an RESP for your child, and planning ahead, you can cultivate a valuable piggy bank for your childs future education.
An RESP is a savings mechanism to help develop your childs education fund by investing money over time, facilitating financial growth of the plan until your child reaches 31 years of age. With a lifetime limit of $50,000 and no annual limit, the plan enters completion on the 35th anniversary of the birth of the plan. The principal RESP contributions are not tax deductible and unlike the interest earned on the contributions, the principal RESP contributions are not taxed upon receipt.
