RESP

Great benefits of opening a RESP

  • Benefit from tax-free savings

Provided that the earnings that you make from investments are not withdrawn from the RESP, you will not pay any tax on them, giving you the opportunity to grow your savings quicker.

  • Take advantage of government grants

The Canada Education Savings Grant, established by the federal government, will add to your RESP every year. What’s more, families on lower incomes might also receive money via the Canada Learning Bond. Some provinces, including Alberta, Quebec and Saskatchewan, also offer grants to eligible individuals.

  • You can choose your investment options

Take full control of your finances by deciding which investments are best matched to your financial goals, appetite for risk and short / long term objectives. You can choose from a variety of options including GICs and mutual funds.

  • Others can contribute towards a RESP

A friend or family member is able to set up a RESP for your child and they can contribute towards it too to help it to grow faster.

  • Your children are liable for the tax of EAPs

Educational assistance payments can be drawn by your child if they take post-secondary education but they are liable for the tax on the payments. This can be beneficial as your child, while studying, is likely to have little or no income and therefore the tax burden is likely to be lower than if you were liable for it yourself.

  • Benefit from your RESP account for up to 36 years

There are a few rules to be aware of relating to the time periods that apply to RESPs. For example, if you are eligible for disability tax credit, your RESP account can stay open for a maximum of 40 years. And if your child wants to take a break from studying before returning to education later, they may still be able to use the money invested in the RESP. The golden rule is to check the specific rules of your scheme in relation to every eventuality.

Latest News

RRSP Tax Savings Calculator for the 2019 Tax Year

The 2019 RRSP Tax Savings Calculator

2020 Financial Calendar

Financial Calendar for 2020- All the deadlines you need to know to maximize your benefits!

2020 Financial Facts for Employees

2020 Financial Facts for Employees includes Consumer Price Index, Bank of Canada Interest Rate, Federal Income Tax Brackets, TFSA, RRSP, CPP, OAS, Probate Fees, Canada Child Benefit, Registered Disability Savings Plan and RESP Numbers.

Business Owners: 2019 Tax Planning Tips for the End of the Year

If your corporate year end is December 31, it’s a great time to review your business finances. With the federal election over and no major business tax changes for this year, 2019 is a good year to make sure you are effectively tax planning. Please keep in mind that your business may be affected by the recent tax on split income (TOSI) and the passive investment income rules given they came into effect in 2018. These rules can be complicated, please don’t hesitate to consult us and your accountant to determine how this can affect your business finances.

2019 Tax Tips for Employees

Now that we are nearing year end, it’s a good time to review your finances. With the federal election over and no major tax personal tax changes for this year, 2019 is a good year to make sure you are effectively tax planning.

Estate Planning for Business Owners

What happens when the children grow up and they are no longer dependent on their parents? What happens to your other "baby"- the business? Estate planning for business owners deals with the personal and business assets.

Retirement Planning for Business Owners - Checklist

As a business owner, one of your challenges is learning how to balance between reinvesting into the business and setting money aside for personal savings. Since there are no longer employer-sponsored pension plans and the knowledge that retirement will come eventually, it’s important to have a retirement plan in place. We've put together an infographic checklist that can help you get started on this.

Retirement Planning for Business Owners

Retirement planning can be a complex process for us all, but if you are the owner of a small business it may can get even more complicated, due to the various factors and circumstances that you have to take into consideration. A common mistake made by small business owners is reinvesting extra money to grow their business, at the expense of putting it aside to save for their retirement.

Investing as a Business Owner

Many business owners have built up earnings in their corporation and are looking for tax efficient ways to pull the earnings out to achieve their personal and business financial goals. We outline the factors to consider when investing as a corporation.