These two initiatives help Canadian families save for a child's post-secondary education in Registered Education Savings Plans
* Exempt Canadian registered retirement savings plans (RRSPs) and registered education savings plans
(RESPs) from the Form 3520-A filing requirements and their U.S.
Highlights include a C$ 2.5 billion multi-year Canada Millennium Scholarship Foundation which is to provide 100 000 scholarships a year to low and middle-income students; as of 1 July income that can be earned tax-free rises C$ 500 for individuals and CS 1 000 for families; the 3 per cent general surtax will be removed on taxable incomes up to C$ 50 000; increased limits on child-care expense deductions; government grants of up to C$ 400 a year to parents who set up registered education savings plans
(RESPs) for their children, employers will not have to pay unemployment insurance premiums for young Canadians hired in 1999 and 2000.
What are Registered Education Savings Plans
Lee told the couple to save $600 in income tax annually by opening three Registered Education Savings Plans
and transferring the limit of $1,500 to each plan from the mortgage fund each year.
Registered Education Savings Plans
and Registered Retirement Savings Plans as well as segregated funds experienced large drops; eight seven and eight points, respectively.
* enhancements to registered education savings plans
for students with disabilities,
Some general observations are made, including the inclusion in the budget of the Registered Education Savings Plans
, which allow parents to save for their children's education, study grants for full- and part-time students with dependents, and new scholarships for students starting in 2000.
Recall that in the November 1992 issue of ACCN, the author reviewed the rules dealing with registered education savings plans
, or RESPs as they are commonly called.
Witness these developments: Investors' own disability insurance package along with custom-tailored term life was introduced; an expanded range of Guaranteed Investment Certificates and other related products were developed; 11 new mutual funds were launched during the decade, and each achieved growth beyond what was expected; Registered Education Savings Plans
were introduced at the beginning of 1988; three new financial planning concepts came on stream, largely for retirement benefits.