Canada Education Savings Grant (CESG)
The CESG is a grant offered by the federal government to help contribute to the RESP of a child up to the age of 18. For every dollar a parent, grandparent or other person contributes the government will contribute an additional 20 cents up to an annual limit of $500 for a $2,500 contribution. There are special rules that apply for contributions being made on behalf of a 16 and 17 year old.
An additional CESG grant is given to families with a net income of up to $37,178. They are eligible for 40 cents for every dollar on their first $500 of RESP contributions. Families with a net income between $37,178 and $74,357 are eligible for 30 cents per dollar each year, on contributions of up to $500.
The maximum lifetime CESG that a child is eligible for is $7,200.
As it is impossible to include all situations, circumstances and exceptions, contact Dustin for a further review. Every effort has been made to ensure the accuracy of the information, however, because of the nature of the subject, no person or firm involved in the preparation or distribution of this commentary accepts any liability for its contents or use.