RESP

CONTRIBUTING TO AN RESP

Contributions by a subscriber make up the capital (principal) portion of an RESP and always belong to the subscriber.

Contributions to an RESP are not tax deductible, so no tax receipts are issued for these contributions.

A contribution to an RESP is only permitted if the beneficiary is a resident of Canada when the contribution is made.

Annual Contribution and Grant Payment Limits:

Annual Contribution Limits: 1998 to 2006: $ 4,000
2007 or later No annual limit
Basic CESG Payment 1998 to 2006: Annual amount $ 400
Yearly maximum payable with carry forward $ 800
2007 or later Annual amount $ 500
Yearly maximum payable with carry forward $ 1,000
Additional CESG Payment 2005 or later: Yearly maximum payable (10% or 20% on the first $500 of contributions) + $ 50
OR
+ $100
Total CESG Payment (Basic + Additional) 2005 to 2006 : Yearly maximum payable with carry forward $ 900
2007 or later: Yearly maximum payable with carry forward $ 1,100

Lifetime Contribution and Grant Payment Limits (per beneficiary):

RESP Lifetime Contribution Limit $ 50,000
Basic & Additional Grant $ 7,200
Canada Learning Bond $ 2,000
Alberta Centennial Educational Savings Grant $ 800
Quebec Education Savings Incentive $ 3,600

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The lifetime limits apply to all contributions and grants received across all RESP accounts the child is named as a beneficiary.

Ways to Make a RESP Contribution:

RESP contributions can be made as lump sum contributions at any time or subscribers can make regular systematic contributions through our Pre-Authorized Chequing (PAC) program, which automatically transfers funds from the subscriber’s bank account into an RESP account using an amount and schedule that is suitable for their investment objectives.

 

Checklist to Make a Contribution:


  • Mackenzie plan number
  • Investment instructions and corresponding beneficiary allocation instructions

Important Contribution Dates to remember

  1. Age 16/17 year rule
  2. Individual RESPs: Contributions can be made up to and including the 32nd year of the plan’s existence.
  3. Family RESPs: Contributions can be made up to the 31st birthday of each beneficiary on the plan.

Receiving Grant

Please see Grant Approval Process under HRSDC Grant Overview.

Depending on the result of the validation by HRSDC the contribution is defined as:

  • Assisted Contribution when it attracts the CESG
  • Unassisted Contribution when it does not attract the CESG