Unlike some other accounts with tough-to-remember contribution cutoff dates, RESP’s annual deadline couldn’t be easier to memorize. If you intend to contribute for the current year, you may contribute into an RESP up until the final day of the year, December 31. So if it’s 11 PM on New Year’s Eve right now, we suggest you put down the champagne and get thee depositing right away. Need we remind you why these accounts are so amazing?
RESPs are the absolute best way for you to save for a kid’s higher education, whether she’s your own child, your grandchild, or just some lucky kid with a generous benefactor. The benefits are two-fold. A genius government program called the Canada Education Savings Grant (CESG) will match a portion of your contribution—a full 20% up to $2,500, or $500 dollars a year up to a lifetime per-kid maximum of $7,200. And that RESP will grow tax-free, so any gains in the investment makes won’t be taxed upon withdrawal as long as it’s used for tuition, books, or any kind of living expenses associated with university or trade school.