Plain meaning
A registered savings plan used to save for a beneficiary's post-secondary education.
Also called
Registered Education Savings Plans
Key points
- An RESP is opened by a subscriber for one or more beneficiaries, usually to save for post-secondary education.
- Contributions are not deductible, but investment income can grow tax-deferred inside the plan.
- Eligible contributions may attract federal grants, subject to annual and lifetime limits.
- Educational assistance payments are generally taxable to the student beneficiary when paid out.
Why it comes up
RESP rules matter when governments change education grants, student supports, or tax treatment of family savings.