Registered Education Savings Plan

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Registered Education Savings Plan

In Canada, an account into which a person makes contributions up to a certain limit in order to save for a university education and from which he/she begins to take distributions to pay for tuition and other expenses. A Registered Education Savings Plan allows for tax deductible contributions and taxable distributions; that is, contributions are tax-deferred until withdrawals are made. Registered Educations Savings Plans may be invested in securities and usually own common stock and certificates of deposit. See also: Registered Retirement Savings Plan.
References in periodicals archive ?
MISSISSAUGA, Ontario, June 24, 2015 /PRNewswire/ -- Knowledge First Financial is a recognized leader in the creation and maintenance of registered education savings plans or RESPs throughout Canada.
Established in 1965, the company, offers leadership in RESPs and can help families provide the best opportunities for their children to pursue post-secondary education and a bright future.
Global Banking News-September 12, 2012--BMO study says Canadian parents looking for financial help from RESPs to fund children's education(C)2012 ENPublishing - http://www.
A survey by Bank of Montreal (NYSE: BMO) has indicated that more Canadian parents are turning to RESPs to fund their children's education.
If a family already takes full advantage of both RRSP and RESP tax deferral mechanisms, then RESPs should certainly be used.
owners from the Form 3520 filing requirements for reporting transfers to RRSPs and RESPs.
The primary effect of RESPs is to add needless complexity to Canada's tax system," said Kevin Milligan, assistant professor of economics at the University of British Columbia and author of the study, entitled "Tax Preferences for Education Saving: Are RESPs Effective?
RESPs are registered with the federal government and allow contributions to grow tax-free until the beneficiary begins studies at an eligible post-secondary educational institution.
Are trust funds or a RESPs wiser investments for your children's future?
UN and are eligible for investment in RRSPs, DPSPs, RRIFs and RESPs.
However, an examination of RESPs raises serious doubts about the program's effectiveness in achieving these goals in the most cost-efficient way.
Since the federal Income Tax Act does not permit contributions to RESPs as deductions from income, they are not as attractive from a tax standpoint as the more familiar registered retirement savings plans, or RRSPs as they are commonly called (stay tuned for my article on RRSPs to appear in early 1993).