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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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The program help new immigrants to: learn how to use credit cards wisely by paying bills on time and limiting themselves to one or two cards; set up RESPs to help students pay for post-secondary studies; and get a mortgage plan that is best suited to their family.
With the help of Soctiabank's StartRight Program, new immigrants can learn how to build credit, set up registered saving plans, such as Registered Education Savings Plan (RESP), and help them to get a mortgage.
The website which boasts a colorful and modern design promises quick access to vital information on RESPs and is part of the company's ongoing efforts to enhance the availability and quality of information to all its members and potential subscribers in Canada.
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.enpublishing.co.uk
These two initiatives help Canadian families save for a child's post-secondary education in Registered Education Savings Plans (RESPs).
If a family already takes full advantage of both RRSP and RESP tax deferral mechanisms, then RESPs should certainly be used.
* Exempt Canadian registered retirement savings plans (RRSPs) and registered education savings plans (RESPs) from the Form 3520-A filing requirements and their U.S.
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?
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).
The program provides a grant of 20 percent on the first $2,000 of annual contributions to Registered Education Savings Plans (RESPs) for children up to the age of 17.
Knowledge First Financial said it has offered new options for families considering creating a registered education savings plan (RESP), including tax-deferred programs that help investments grow faster.