A Registered Education Savings Plan, or RESP, is a tax deferred investment plan that allows you to save up for your child's post secondary education. You can set up an individual plan for one child or a family plan for multiple beneficiaries.

We recommend RESPs if:

• You plan on saving for and investing in your child's or grandchild's education.
• You have an informal trust savings account already set up for your child.
• You have children aged 17 and younger.
• You'd like to save for more than one child.

Make More Money

• Under the Canada Education Savings Grant (CESG), the federal government will top up your annual contribution when it is greater than $500 by 20% to a maximum of $500 each year per beneficiary to a lifetime maximum of $7,200.

Flexibility

• For family plans, you can name as many beneficiaries as you'd like. If one child doesn't go to post-secondary school, another child can still use the money.
• Depending on the plan type you chose, a grandparent or friend can open and contribute to an RESP on behalf of a beneficiary.
• If your child doesn't pursue a post-secondary education, you may be allowed to transfer up to $50,000 of earnings from your RESP to your RRSP or a Spousal RRSP tax-free — assuming that the subscriber and/or spouse has RRSP contribution room available.
• You can withdraw your principal at any time — tax free.

Peace of Mind

• You can feel satisfied knowing your child's future education will be covered.

Things You Need to Know

• As of June 23, 2007 there is no longer an annual limit that must be adhered to, and the lifetime maximum has been increased to $50,000 per beneficiary.
• Although contributions are not tax deductible, all income earned within an RESP is sheltered from taxes until it is withdrawn to pay for the beneficiary's education. Withdrawals are taxed at the student's tax rate, which is likely lower than the subscriber's tax rate.
• You can establish individual RESPs for one child or a family RESP for all your children.
• You must meet government regulations before you can qualify for the RESP program.

Ask the Experts

To find out more or to get a Meridian financial expert working for you, call 1.866.592.2226 or come into your local Meridian branch today.