RESPs

What better investment than your child’s or grandchild’s education? Start today with a Registered Education Savings Plan (RESP).

You can contribute up to $50,000 per child throughout the lifetime of your RESP. And because RESPs are registered plans, your savings grow tax-free while in the plan. As an incentive the government provides a Canada Education Savings Grant of 20 percent on the first $2,500 in annual contributions, with a lifetime grant limit per child of $7,200. Every child under age 18 who is a Canadian resident will accumulate $400 (for 1996 to 2006) and $500 (from 2007 and subsequent) of CESG contribution room. Unused CESG contribution room is carried forward and used when RESP contributions are made in future years provided that the specific contribution requirements for beneficiaries who attain 16 or 17 years of age are met.

As soon as your children begin using their RESP funds to go to school, the income becomes taxable in the child’s hands. In most cases, since the student has very little income, any income earned within the RESP is taxed at the student's lesser marginal rate.

Alterna Savings provides access to several RESP products including the OceanRock Mutual Funds and Meritas SRI Funds, as well as our own RESP term deposit. Contact us today to find out more.

RESP Questions & Answers
Online brokerage services are offered by Qtrade Investor. Securities and securities related financial planning services are offered through Qtrade Advisor. Qtrade Investor and Qtrade Advisor are divisions of Qtrade Securities Inc., Member of the Canadian Investor Protection Fund. Mutual funds and securities related financial planning services are also offered through Qtrade Asset Management Inc., Member MFDA.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.