Tag · Canada
RESP
Loopholes Tagged "RESP"
Plain-English guides to Canadian legal rights and workarounds related to RESP.
Easy student-loans-education
RESP Government Grants — Collect Up to $7,200 in Free Federal Money for Education
The federal government automatically adds 20% to RESP contributions — up to $500 per year per child in free grants, with a lifetime maximum of $7,200.
Medium If You're Saving for Retirement
RESP-to-RRSP Conversion (Accumulated Income Payment)
If a child doesn't pursue post-secondary education, RESP subscribers can roll up to $50,000 of accumulated income directly into their RRSP — tax-deferred — avoiding a hefty penalty tax, provided they have available RRSP room.
Hard If You're Saving for Retirement
RESP Accumulated Income Payment to RRSP — Move Excess RESP Earnings Without the 20% Penalty Tax
When an RESP has excess income and education plans collapse, some accumulated income payments can be rolled to the subscriber's RRSP instead of being taxed at regular rates plus the extra 20% tax.