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 Education Planning

Financial Planning

Canada Education Savings Grant (CESG)
RESPs are even more attractive when you consider the federal government's Canada Education Savings Grant (CESG), which was designed to encourage you to save for your child's education. On the first $2,000 of annual RESP contributions that you make for each child up to and including the year they turn 17, the government will contribute an extra 20 per cent directly to the RESP. The maximum CESG available for any single year is $400 (20 per cent of $2,000); however, if a contribution is not made in a given year, the $2,000 CESG contribution room is carried forward. Since the maximum annual contribution that can be made to an RESP for any one beneficiary is $4,000, the maximum CESG payable in any one year is $800 and the maximum lifetime CESG for each beneficiary born after 1997 is $7,200 (20 per cent x $2,000 x 18 years).

For more information, contact an Investment Advisor at a BMO Nesbitt Burns branch near you.

If you would like a BMO Nesbitt Burns Investment Advisor to contact you, simply complete this brief contact form.

Note: The comments included in the publication are not intended to be a definitive analysis of tax law: The comments contained herein are general in nature and professional advice regarding an individual's particular tax position should be attained in respect of any person's specific circumstances.

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