Making the most of a late RESP start

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2 Responses to Making the most of a late RESP start

  1. Shirley McCarthy says:

    One error in your info, Pat: There is no annual $4,000 limit on RESP contributions, only the $50,000 lifetime limit, per child. CESG (federal grant) can be claimed retroactively for 1 year at a time, i.e. a $5,000 investment (for a child at least 1 year old) will bring maximum grant for the current year and the year preceeding. Also, regarding CESG eligibility for older kids: in order to receive CESG at ages 16 & 17, a child must have an existing RESP set up and registered prior to the end of the year they turn15 years old, with (a) at least $2,000 deposited (and not withdrawan) or (b) at least $100 contributed for 4 years prior (and not withdrawn), otherwise there will be no grant paid for contributions in those last two years.

    • Pat Foran says:

      Yes, that’s correct Shirley. It was recently changed – thanks.

      What are the RESP contribution limits (yearly and lifetime)?

      From 1998 (the first year the program started) to 2006, inclusive:
      annual contribution limit: $4,000
      lifetime contribution limit: $42,000 (including any contributions made prior to 1998)

      From 2007 to the present:
      no annual contribution limit
      lifetime contribution limit: $50,000 (including all contributions made prior to 1998)