RESPs

Registered Education Savings Plans

Congratulations! You’ve taken the first step towards building a bright future for a special child in your life, you have started thinking about saving for their education. Now let’s make it happen.You can start by making small regular contributions or by depositing a lump sum of extra cash you may have received, hello income tax refund. Not sure where to begin? Contact one of our Member Service Representatives and we’ll get you on the right track.

Lakeland Credit Union offers RESPs through Concentra Financial Services Association. All you need to get started is a Social Insurance Number for your beneficiary and a few minutes to complete some paperwork.

RESPs – The Highlights

  • There is no annual limit for contributions to RESPs. The lifetime limit per child (the beneficiary) is a maximum of $50,000. Any Canadian residents with a SIN can be a subscriber and contribute to an individual plan.
  • RESP contributions are not tax-deductible; growth earned on contributions is not taxable until it is drawn from the plan.
  • Once the child starts a post-secondary education program, education assistance payments may be drawn from the RESP to pay for tuition, books, accommodation – in fact, anything that will assist the child during their studies.
  • If your child completes their education and there’s money remaining in the plan, you may be able to name another beneficiary. Certain conditions must be met in order for any grants to remain in the plan.
  • The maximum annual amount of CESG (Canada Education Savings Grant) that can be paid in a year increased from $400 to $500 (or from $800.00 to $1000.00 if contributing for a catch-up year) but the percentage remained the same at 20%*.  The lifetime maximum for CESG remains at $7200.00
    *(Note: this means that the amount that the government matches at 20% increased from $2000.00/year to $2500.00 per/year.  They will only match for one “catch-up” year each year)
  • There are also additional grants that members can apply for at birth ($500.00- Alberta Centennial Education Savings Plan Grant) and ages 8, 11 and 14 ($100.00 each- also Alberta Centennial Education Savings Plan Grants).  Members can apply for these grants up to six years after the given ages (i.e. for the 8 year old grant, they can apply up until the child’s 14th birthday)

Make every dollar count!

Find out how your family can benefit from additional RESP incentives.

1) Canada Education Savings Grant

2) The Canada Learning Bond (CLB)

3) Alberta Centennial Education Savings (ACES)

For more information check out our RESP brochure, contact us or visit the federal government website.

 

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