Registered Education Savings Plans (RESPs) are a practical way for parents and grandparents to contribute to a child’s education. Moya Financial can establish family plans that will allow the contributor to designate several children as beneficiaries.
Here are some of the benefits of an RESP at Moya Financial:
- Funds grow tax-sheltered until the child begins post-secondary education
- Principal amount can be withdrawn anytime, tax-free
While the principal can be withdrawn anytime, the allowable contribution amount cannot be replenished. All funds in the plan must be withdrawn before the end of the plan’s 25th year.
If you decide not to choose an RESP for your children, then you have the option of opening a regular investment account “in trust” for your child. You can talk to one of the representatives at Moya Financial for more details.
Canada Education Savings Grant
If you decide to invest in an RESP, the federal government offers a Canada Education Savings Grant (CESG) equal to 20% of the first $2,500 of annual contributions ($500 per year) for children up to 17 years of age. In order to receive this grant, the child must have a social insurance number. Applications for this grant are available at Moya Financial.
For more information, please go to Service Canada.