What is an RESP

 

A Registered Education Savings Plan, also known as an RESP, is a savings plan used by parents to help them save for their children’s post-secondary education in Canada. With the rising costs associated with sending a child to college or university, an RESP can really help because the government provides grants* while the savings grow tax-deferred until withdrawn. When the student withdraws the funds for educational purposes, the withdrawals are taxed in the student’s hands, typically at a lower rate.

The sooner you start, the more you save.

Heritage Education Funds is one of the leading Canadian providers of group Registered Education Saving Plans (RESPs) with 50 years in RESP experience. Heritage RESP representatives have been helping families save for their children’s post-secondary education since 1965. Currently, Heritage has over $2.59 billion in assets under management, empowering over 447,000 children with a post-secondary education, with $1.35 billion in payouts since inception, as of April 2015.

Choose Your RESP

Each of our RESPs plans offers a pooled fund. Your child’s portion of the pooled fund is determined by the number and value of units you purchase. We offer two main RESPs plans: The Heritage Plan, which offers the benefits of pooling, and the Impression Plan, which is a self-directed plan that offers the flexibility of a lower risk, mutual fund-type RESP.

Grow Your RESP

Take advantage of a number of government grants with an RESP – your education savings plan. With the Canada Education Savings Grant* (CESG), you can receive up to $7,200 for your child’s education from the Canadian government. With the Canada Learning Bond (CLB), you can receive up to $2,000 for your child’s post-secondary education.

Learn more about Government Grants.

A subscriber can contribute any amount to an RESP, subject to a lifetime contribution limit of $50,000 per beneficiary (child). Take advantage of the RESP tax benefits. With an RESP, you can shelter your investment earnings from tax while your education fund grows. When your child is ready to use his/her RESP for university or college, the funds are taxable under the student’s name. Because students typically have high exemption status and low income, the taxes they pay should be little to none.

Learn more about RESP Tax Benefits.

Using Your RESP

A Heritage Registered Education Savings Plan has a set maturity date. This date typically falls on July 31st of the year the beneficiary (child) turns 18. On the maturity date of your RESP, you’ll need to choose the appropriate payout option.

Learn more about the maturity process.

RESP Calculator

The Heritage RESP calculator can help you evaluate the estimated tuition costs in Canada for your child’s post-secondary education. The RESP calculator will also suggest how much you need to set aside each month, or year, to reach your goal — and how much you will be saving by contributing to an RESP instead of borrowing.

Try our RESP calculator today.

 

Start Early. Save Often. Stay Invested.™