How to access your child's RESP funds without taking a big tax hit
There are two main approaches for Canadian parents to maximize a registered education savings plan (RESP), according to one strategist.
Julie Petrera, a senior strategist at Edward Jones Canada, said in an interview with BNN Bloomberg Wednesday that an RESP has no annual limit, but it does have a lifetime limit of $50,000 per child.
According to Statistics Canada, the Canada Education Savings Grant (CESG) can add 20 per cent of RESP contributions up to $2,500, meaning that the CESG can provide an extra $500 to an RESP annually. In total, a child can receive a maximum of $7,200 from a CESG.
“So you could front-load it or you could try to contribute $2,500 a year to maximize the grant,” Petrera said.
Check out the full video at the top of the article to learn more.