RESP - Government Incentives
Canada Education Savings Grant (CESG)
The CESG is available to eligible RESP beneficiaries and is based on the annual contribution paid in the plan. The Federal government will contribute 20% annually on the first $2,500 deposited into an RESP to the end of the year in which the beneficiary attains age 17* .
All children under the age of 18* who are resident in Canada automatically accumulate CESG contribution room.
Annual CESG maximum: $500 per beneficiary ($1,000 where beneficiary has unused CESG contribution room)
Lifetime CESG maximum: $7,200 per beneficiary
Eligible beneficiaries receive up to 20% additional CESG on the first $500 RESP contributions
Eligibility for additional CESG is determined by the child’s family net income
Eligible beneficiaries could receive additional CESG of $100 annually for a total combined basic and additional CESG of $600 annually
Lifetime CESG maximum remains at $7,200 per beneficiary
*Some restrictions apply for RESP beneficiaries aged 16 and 17
Canada Learning Bond (CLB)
The CLB is available to children born on or after January 1, 2004. Eligible beneficiaries will receive an initial grant of $500 and subsequent grants of $100 per year of eligibility. The CLB eligibility is determined by the child’s family’s net income and entitlement to the National Child Benefit (NCB) supplement. The lifetime CLB maximum is $2,000 per beneficiary.
Saskatchewan Advantage Grant for Education Savings (SAGES)
In 2013, the Saskatchewan government passed legislation to help families save for their children’s post-secondary education. Commencing in 2013, all children under the age of 18 automatically accumulate SAGES grant room. A child does not have to reside in Saskatchewan to accumulate grant room. However, to receive SAGES payments, contributions must be made to an RESP and the beneficiary must be a resident of Saskatchewan at the time the contributions are made. The Saskatchewan government will contribute up to 10% annually, on the first $2,500, deposited into an RESP, to the end of the year in which the beneficiary attains age 17*.
Annual SAGES Grant maximum: $250 per beneficiary ($500 where beneficiary has unused SAGES Grant room)
Lifetime SAGES Grant maximum: $4,500
*Some restrictions apply for RESP beneficiaries age 16 and 17.