Government Contributions

The federal government created the Registered Education Savings Plan (RESP) to make it easier for you to start saving earlier for post-secondary education – and to continue saving until the funds are needed.

• The federal government tops up your annual contribution by 20%, up to a maximum of $500 ($2,500 contributions x 20%) per beneficiary per calendar year, to a lifetime maximum of $7,200

Your child could receive additional CESG payments on your RESP contributions if your net family income is:

• Below $37,178*: Child receives grant in the amount of 40 cents for every dollar on the first $500 saved in your child’s RESP each year
• Between $37,178* and $74,357*: Child receives grant in the amount of 30 cents for every dollar on the first $500 saved in your child’s RESP each year

*Income levels based on 2007 income brackets.

Additional facts about government contributions:

• Contributions for an eligible beneficiary must have been made by December 31st of the calendar year in which the beneficiary turns 17
• Beneficiary must be a resident of Canada at the time of the contribution and have a valid Social Insurance Number (S.I.N.)
• Unused CESG-eligible contribution room may be carried forward into subsequent years¹

You may be eligible for additional grants:

• The Canada Learning Bond (CLB) was introduced by the federal government in 2005 for modest-income families
• For families who qualify, the CLB pays $500 the first eligible year and $100 every additional eligible year through the 15th year of the child
• The Alberta Centennial Education Savings (ACES) Plan pays families of children in the Province of Alberta $500 for newborns since 2005, and $100 for all eligible 8, 11 and 14 year olds