What is the minimum amount required to open an MD RESP?
An MD RESP can be started with as little as $25 per month with our Pre-Authorized Contribution (PAC) program. Set up a PAC for $209 each month to take advantage of the maximum federal grant available (and the maximum Quebec incentive payment if your beneficiary resides in Quebec).
What is the annual deposit limit for an RESP?
The 2007 federal budget removed the annual limit of $4,000 per child. There is currently no annual limit as long as the lifetime contribution limit of $50,000 is not exceeded.
What is the lifetime deposit limit for an RESP?
The lifetime contribution limit is currently $50,000 per child.
Can I make a lump sum deposit of $15,000?
Yes, provided you are still below the lifetime contribution limit of $50,000. However, the Canada Education Savings Grant (CESG) will only pay $500 (20% of the first $2,500). If there is unused grant room from prior years, you may qualify for an additional $500 (20% on the next $2,500) for a total of $1,000. The remaining $10,000 will not be eligible for a CESG.
In addition, when making large lump sum RESP contributions you should contact Human Resources and Social Development Canada (HRSDC) to confirm remaining lifetime RESP contribution room. HRSDC (and the Canada Education Savings Program) can be reached by phone at 1 888 276-3624 or by mail at 140 Promenade du Portage, Phase IV, Gatineau, QC, K1A 0J9.
What are the specific terms of the Canada Education Savings Grant?
The annual grant is equal to 20% of the first $2,500 of RESP contributions. If there is unused grant room from prior years, you may qualify for an additional $500 (20% on the next $2,500) for a total of $1,000. The maximum lifetime grant is $7,200 per beneficiary.
How do I determine the total amount that has been contributed to my child's RESP?
Contact HRSDC to confirm remaining lifetime RESP contribution room. HRSDC (and the Canada Education Savings Program) can be reached by phone at 1 888 276-3624 or by mail at 140 Promenade du Portage, Phase IV, Gatineau, QC, K1A 0J9.
Is it better to take full advantage of the CESG or deposit the maximum lifetime limit at once?
Unfortunately there is no simple answer. The best course of action will depend on a number of factors like the age of your child and your current RESP contributions. Your MD advisor can work with you to determine what the best solution is for you.
What provincial grants am I eligible for?
Alberta and Quebec are currently the only two provinces with provincial education savings programs.
The Alberta program consists of an occasional grant of $500 and/or $100 depending on a child’s age and whether a parent or guardian is a resident of Alberta. Your MD advisor can tell you more about the program or you can read the program information on the government of Alberta’s website.
The Quebec program consists of an annual incentive payment to an RESP with an eligible beneficiary that resides in Quebec, to a maximum of 10% of contributions (maximum payment of $250 in any given year). Your MD advisor can tell you more about the program or you can read the program information on the Revenu Quebec website.
