RESPs do come with certain restrictions

The following are government imposed limitations on RESPs that you should be aware of:

  • There is a $5000 limit on an EAP (Education Assistance Payment or the portion of your RESP from accumulated income) withdrawn during the first 13 weeks of schooling
  • There is a lifetime contribution limit of $50,000 for all RESP plans, and the maximum grant total received from the CESG (Canada Educations Savings Grant) is $7,200
  • There are special eligibility requirements to qualify for the CESG when the beneficiary is 16 or 17. Please refer to the CESG website for a list of conditions that must be met
  • A beneficiary is no longer eligible for grants in the calendar year he or she turns 18, even if carry-forward room exists

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