Couple of weeks ago, I wrote about the importance of setting up RESP early on for kids to make their college, university or trade school a reality. With the rising cost of education, it is imperative to anticipate and save well before our kids embark on higher studies to realize their dreams of Some Day.
In simple terms, The Registered Education Savings Plan (RESP) helps parents, grand parents or family and friends to set up a tax sheltered plan to save for the child’s post secondary education.
Now, RBC’s RESP program has some great features you may want to consider like the flexibility of the plans or convenient ways it offer to make the payments every month.
Take a look at this chart below and enlighten yourself further:
In a recent Twitter chat we had with them, RBC unveiled some little known facts about RESP and I want to share them with you.
Did you know?…
You can contribute to RESP until the year of your child’s 17th birthday.
You also cannot open an RESP account until your child is born due to SIN# requirement
If your child is already enrolled in the post secondary education, they pay the taxes when the money is withdrawn from RESP account.
This one is great!-If a child decide not to pursue the post secondary education, the plan can remain open for 36 years. Upon cancellation, the money can be transferred to a sibling or roll over to the parents’ RRSP! ( Wonderful, isn’t it?)
There is no maximum amount that can be withdrawn from RESP annually.
Finally, did you know that your RESP investments can grow up to the value of a maximum of $50,000? (Depending you start investing early and regularly and in a time frame of 18 years)
I am sure there is a lot more to RESP than whatever is mentioned above. If you have any questions or want to know more about RBC’s RESP program, feel free to visit your local RBC branch or check their website. There is a lot of useful information in there.Make plans to secure your childrens' future with the help of RBC's RESP #SomeDay #RESPwithRBC Click To Tweet
More good news people!
There is a contest going on right now where participants have a chance to win 1 of 4 prizes of $500 to put towards their own RESP. Contest ends October 4, 2015, so you have to hurry!
It is never too late to start saving. Make plans to secure your childrens’ future with the help of RBC’s RESP. Let’s make our kids’s Some Day happen, starting today!
****This post is written in partnership with RBC and Influence Central Canada.All opinions are 100% my own****