An RESP is a tax-deferred account to help you save for a child’s or grandchild’s post-secondary education. Anyone can open an RESP and contribute money at any time, up to a lifetime total of $50,000 per child. Contributions aren’t tax deductible, but any investment income earned within the plan will be taxed only when it’s withdrawn. If that income is withdrawn to pay for the child’s education it will be taxed to the child, not to the contributor.
Through the Canada Education Savings Grant (CESG), the federal government will match up to 20% of your RESP contributions up to a maximum of $500 per child, per year, to a total of $7,200 per beneficiary, until they turn 17.