• A Registered Education Savings Plan (RESP) is a Canadian government sponsored college plan.

  • RESP subscribers make contributions that accumulate tax-free income to pay for higher education.
  • In addition to parental contributions, the state contributes a certain amount to these plans for children under the age of 18.
  • The Government of Canada caps a lifetime contribution cap of $50,000 per beneficiary from all RESPs combined.
  • If a child does not complete an approved post-secondary education program within 36 years of account opening, the government may request a refund of the grant money.
  • There are penalties and withholding tax on investment income that is derived from RESP and not used for college or vocational school.