Registered Education Savings Plans (RESPs)

A registered education savings plan (RESP) is a contract between a subscriber and a promoter (banks, trust companies and scholarship funds) and is a tax-deferred way to save for a beneficiary's post-secondary education. Contributions made by the subscriber are not tax deductible but earnings on such contributions are held in a tax-exempt trust. Contributions may be eligible for Canada Education Savings Grant (CESG) payments that are managed by Human Resources and Skills Development Canada (HRSDC). Investment earnings on contributions and CESG payments grow tax-free until they are distributed and included in the recipient's income and taxed accordingly.

Before marketing an education savings plan, the Registered Plans Directorate must be provided with a specimen of the arrangement. The documents are reviewed thoroughly for compliance with the Income Tax Act. After approval, we must be provided with an official copy of the document being marketed. Lists of new plans sold under each specimen, including required information, are then submitted to the Registered Plans Directorate for registration.