December can be a busy month so now is a good time to take a look at your RESP contributions for 2019. The deadline for 2019 RESP contributions is December 31, and the annual contribution room that is eligible for the Canadian Education Savings Grant (CESG) is $2,500. The government matches your contribution with a 20% grant up to $500.
Contribution room starts accruing in 2007 or the year the child was born, whichever is later, and RESP contributions can be made up to the end of the year the child turns 17. The lifetime maximum you can contribute per child (RESP beneficiary) is $50,000, and the total CESG a child can receive is $7,200.
If you haven’t contributed the maximum every year, you can contribute up to an additional $2,500 per year; each calendar year you can catch-up for one year of missed contributions.
Contact us if you'd like to set up an RESP, or inquire about making a contribution before this year's deadline.