Fact Sheet

ESP contributions returned to the subscriber

May 22, 2001

How to register your education savings plan

If you opened an education savings plan (ESP) in 1999, and your contributions were refunded back to you, it means that your plan was not registered with the Canada Customs and Revenue Agency (CCRA). You may be eligible to have a replacement ESP retroactively registered back to 1999.

Your plan could not be registered because the social insurance number (SIN) for the child (beneficiary) was missing. The Income Tax Act requires that a SIN for each child (beneficiary) be provided before an ESP can be registered.

A registered education savings plan (RESP) allows you (the subscriber) to shelter the plan's income from tax. In addition, the first $2,000 of annual contributions made on behalf of a beneficiary become eligible for a 20% grant under the Canada Education Savings Grant. These advantages are only available if your plan has been registered.

Final Registration Deadline:

You can still register your 1999 ESP by completing the following steps before the final registration deadline of December 31, 2001:

1. Complete an ESP application form with an RESP promoter which includes the social insurance numbers (SINs) for each subscriber and beneficiary. For your convenience, a SIN application form is included with this fact sheet.
   
   
2. Provide the RESP promoter with the letter included with this fact sheet.
   
   
3. Contribute an amount not less than all of the investment earnings in 1999 and 2000, and not more than all of the contributions made, plus the investment earnings in 1999 and 2000.
   
   
4. If you received a T3 or T4A slip from your original promoter and you have retroactively registered your 1999 ESP with a different promoter, you should contact your original promoter and request that this promoter issue you amended T3/T4A slips.

Once your plan has been registered the promoter can apply, on your behalf, for a grant under the Canada Education Savings Grant.

For more information, call: 1-866-753-4455