Reviewed by Paul Thorne
A Registered Education Savings Plan (RESP) is a tax-deferred investment account designed to help you save for your children's, grandchildren’s, or loved one’s post-secondary education. Contribution limits apply, but you can benefit from various government grants and incentives to help you save.
Parents, grandparents, or other individuals can contribute to an RESP. The government provides grant money, based on amounts contributed. All funds can grow tax-deferred. Grants and investment growth are taxed only when withdrawn (generally for the beneficiary’s education).
There is no annual contribution limit for an RESP, but a lifetime contribution limit of $50,000 per beneficiary.
There is no deadline. You can contribute to an RESP any time during the year.
However, if you want to receive government grants and incentives for the year, the RESP contribution deadline is December 31. You can contribute to an RESP for up to 31 years after the plan's opening date.
Due to processing times, you may want to make your contribution several business days ahead of the deadline or set up monthly contributions.
No, RESP contributions are not tax-deductible. Any income earned on contributions and grants grows tax-deferred until withdrawn. RESP contributions themselves can be withdrawn tax-free.
* A tax deduction refers to the amount you can subtract from your taxable income to lower your tax bill.
An over-contribution occurs when the total contributions to a beneficiary's RESP(s) exceed the lifetime limit of $50,000.
The penalty for over-contributing to an RESP is a 1% per month tax on the amount over the limit until it's withdrawn.
To avoid over-contributing, you can:
You can make contributions for up to 31 years after opening the plan, but strategic planning is crucial to maximize government grants over time. Although the lifetime contribution limit is $50,000, it's important to consider the timing of contributions to fully benefit from available government incentives.
Here are the different incentives available to Canadians:
The Canada Education Savings Grant (CESG) is a federal government program that encourages parents, family, and friends to save for a child's education by adding funds to the child's RESP.
Every Canadian child under 18 builds up CESG room:
Any unused room carries forward to future years. You can use it when you contribute to their RESP later, subject to restrictions.
If you've missed contributions in past years, a Sun Life advisor can help you calculate how much to contribute and how much CESG you will get.
The government deposits CESG based on contributions using a matching formula.
Regardless of your family income, the federal government will match up to 20% of your RESP contributions, up to $500 per year and $7,200 in total, per beneficiary. If your family income is below a threshold, you may be eligible for a larger annual grant, but the $7,200 lifetime maximum grant amount won’t change.
This helps you to get more in the RESP earlier.
If you miss contributing to an RESP in a given year, the CESG entitlement for that year doesn’t disappear. Instead, it is carried forward, giving you the chance to catch up in the future. However, there are some important restrictions to keep in mind:
With these restrictions in mind, it may take you multiple years to catch-up if you’ve missed a contribution for one or more years.
Need help catching up on the CESG entitlements or RESP contributions? An advisor can help.
The Canada Learning Bond (CLB) is a federal government program that helps lower-income families pay for their children’s education. If you qualify for and receive the Canada Child Benefit, you can apply for the CLB.
The bond provides up to $2,000, over time, for your child’s education. You don’t have to contribute to an RESP to get the bond; you only have to open one. Note that not all RESP providers offer the CLB.
The Québec education savings incentive (QESI) is a tax measure that encourages Québec families to start saving early for the education of their children and grandchildren.
It’s a provincial refundable tax credit paid directly into an RESP opened with an RESP provider that offers the QESI. To get the credit, the trustee of your RESP must apply to Revenu Québec.
If you are eligible, you can also catch up on basic QESI and additional QESI amounts.
Speak with an advisor for more details.
The British Columbia Training and Education Savings Grant (BCTESG) is a $1,200 grant payable into an RESP for an eligible child living in British Columbia. Eligible children must be named as beneficiaries of an RESP held by a person living in British Columbia, through a participating financial institution.
Eligibility depends on the child’s year of birth, and the grant can be applied for between the child’s 6th and 9th birthdays.
Not sure how much you need to save for your child’s education?
Think you can only use an RESP for full-time university or college? Think again.
Don’t worry, there are plenty of options.
This information is meant for educational and illustrative purposes only. Some conditions, exclusions and restrictions apply. Last updated: April 1, 2025.
