Everyone has their own reason for saving.
If your kid's future is part of that, an RESP from ACU should be part of your saving strategy. We have the products and expertise to create the best plan to help you reach your goals… and theirs. An RESP lets you take advantage of tax free government contributions. We can even set it up as a monthly automatic deposit to help you earn even more. Talk to us today.
Benefits of an RESP
Although contributions are not tax-deductible, all investment income generated in the RESP is tax-sheltered as long as it remains in the plan.
You decide how much money should be withdrawn and when it should be withdrawn. The withdrawals can be used for a variety of education costs, including tuition, books and living expenses.
When the money is withdrawn the earnings and government contributions are taxed against the student's income, so he or she may pay little or no taxes on the money.
The federal government contributes a 20% bonus of up to $500 every year, to a lifetime limit of $7,200 per child.
Access to Canada Learning Bonds and enhanced Canada Education Savings Grants are available for qualifying low to middle income families.
The following web-based presentations will help you learn about how RESPs work:
- Subscribers and Beneficiaries – Definitions
- Individual and Family Plans – What’s the Difference?
- Canada Education Savings Grant (CESG)
- Canada Learning Bond (CLB)
- Withdrawals for Beneficiary’s Education
- Available Options when Beneficiary does not go to school
- Deceased Subscriber or Beneficiary
*Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities Inc. Credential Securities Inc. is a Member of the Canadian Investor Protection fund.
®Credential and Credential Securities are registered marks owned by Credential Financial Inc. and are used under licence.