Posted on: 10-12-06 23:27:05
I am a new immigrant and at least 3 persons have approached me with the RESP plan.Can someone help me with the pros and con of RESP.
RESP = Registered Education Saving Program
Govt contributes 20% of what you invest for your child with some limits on the contribution and the timing of withdrawal.
Search CD in investing... there are many threads with complete information
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Non illigitamus carborundum
RESP is registered education savings plan.
It is a vehicle to invest money to save tax and based on your annual salary goverment is also contributing into it and mean to sponsor university education cast is spiralling. go to below given link and hopefully all your questions will be answered.
http://www.hrsdc.gc.ca/asp/gateway.asp?hr=en/hip/lld/cesg/publicsection/faqs_resp.shtml&hs=cgs
Quote:
Originally posted by regar
based on your annual salary goverment is also contributing into it
I never heard of that???
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Quote:
Originally posted by regar
RESP is registered education savings plan.
It is a vehicle to invest money to save tax
Never heard of this as well...
Hiren
http://www.hrsdc.gc.ca/asp/gateway.asp?hr=en/hip/lld/cesg/publicsection/faqs_resp.shtml&hs=cgs
If a subscriber has two children in a family plan, is each child eligible for the $400 Grant?
Yes. Eligible Grant limits are calculated for each beneficiary individually
Will I lose my money if my child does not go on to post-secondary education after high school?
No. An RESP can exist for 26 years before you must close it. If a child does not wish to pursue post-secondary education immediately, it is recommended that you wait a few years until the child decides whether or not to pursue his or her education. Rest assured that the money invested in the RESP will continue to earn tax-sheltered income during this period. Should your child decide never to pursue post-secondary education, you have the option of transferring the earned income (up to a maximum of $50,000) into your Registered Retirement Savings Plans (RRSPs), or that of your spouse. Finally, the money can be withdrawn subject to various tax rates. Under all these circumstances, the grant is returned to the Government of Canada. However, the interest earned on the grant remains with you, the subscriber
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You know you are a desi when ........ You spew forth the virtues of India, but don't want to live there...............You've never had a tanning salon membership
This is for those who are not aware of Annual income and relation of govt contributions RESP..I am not here to increase my number of post or to prove anything just my input of what little i know.....
How much is the grant?
The amount of the grant is based on your family income. The amount can change over time as your family income changes.
Depending on your family income, your child could receive an additional grant on RESP savings that you make after December 31, 2004 on behalf of a child:
If your net family income is below $36,378*, the Canada Education Savings Grant will give you 40 cents for every dollar on the fi rst $500 you save in your child’s RESP each year. If you save more than $500, you will get 20 cents for every extra dollar, up to a maximum of $2,000.
If your net family income is below $72,756*, the Canada Education Savings Grant will give you 30 cents for every dollar on the fi rst $500 you save in your child’s RESP each year. If you save more than $500, you will get 20 cents for every extra dollar, up to a maximum of $2,000.
No matter what your net family income is, the grant provides at least 20 cents for every dollar of the fi rst $2,000 of annual RESP savings made on behalf of a child. If you make $2,000 in RESP contributions in one year, you will receive between $400 and $500 in CESG (depending on your family income).
