A reminder of the upcoming RESP contribution deadline. Unlike the RRSP deadline, which is 60 days after the end of the year, the deadline for 2014 RESP contributions is Wednesday, December 31, 2014. An RESP makes the perfect Christmas gift!
RESPs are an efficient way to save for a child’s education in large part because of the Canada Education Savings Grant (CESG). The grant matches 20% of a deposit to an RESP and is now available on the first $2500 contributed for a maximum grant of $500. However, if you have missed contributing in prior years you can make up all or part of the contribution. For example, if you missed making a contribution last year, you can contribute $5000 into the RESP and get a $1000 grant.
For more information on RESPs and how they work, please see the Canada Revenue Agency (CRA) website for further details.