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  "Part-time Students are
              also Eligible for RESP Assistance"
What is an RESP?
An RESP is a tax-shelter designed to benefit post-secondary students. Although RESP contributions are not tax-deductible, they do allow savings to compound and grow tax-free until the child is ready to go full-time to college, university, or another post-secondary educational institution.
Anyone can open an Individual RESP Plan and anyone can contribute to it. This includes parents, grandparents, aunts, uncles, and friends
The maximum annual RESP contribution that will qualify for the 20% CESG is $2,500 or $500 per beneficiary.The annual RESP contribution limit has been eliminated. The total RESP lifetime contribution limit for each RESP beneficiary is $50,000. Part-time students are also eligible for RESP assistance
You have various options available should your original beneficiary decide not to pursue a post-secondary education. You can:
Decide to select another beneficiary if it is permissible according to your plan.
Make a tax-free capital withdrawal of all the money you contributed to the plan. However you will be required to pay back the Basic CESG, Additional CESG, CLB and ACES grant.
withdraw the earnings as cash (subject to income tax in the year it is withdrawn, along with a 20% penalty).
Transfer up to $50,000 of the earnings in the RESP to your personal or spousal RRSP, provided you have unused contribution room. With this option you will avoid paying income tax on the income withdrawn.
Donate the earnings from the plan to a qualifying educational institution.
To take advantage of options 3, 4 & 5, the RESP must have existed for at least 10 years, the contributor must be a Canadian citizen, and all beneficiaries (other than deceased individuals) must be 21 years of age or older and not pursuing a post-secondary education. In all cases where a withdrawal is made from an RESP for non-educational purposes the Basic CESG, Additional CESG, CLB and ACES grant must be returned to the government.
Any principal contributed to the RESP can be withdrawn at any time by its contributor. In this case, any eligible CESG payments on those contributions must be repaid to the Government. If the student elects to not attend a post-secondary institution, any accumulated interest may be withdrawn by the contributor; this interest is taxed as income unless it is rolled into a registered retirement savings plan (RRSP), subject to individual contribution limits and applicable rules
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