What does CESP mean in CANADIAN

The Canada Education Savings Program (CESP) provides financial assistance to help Canadians save for post-secondary education and training. Through the CESP, eligible contributors can claim up to $500 of additional contributions per year of a beneficiary's RESP, and an additional 20% on any contributions made by the beneficiary's parents or guardians.

Anyone who is a Canadian resident with a Social Insurance Number (SIN) can open a Registered Education Savings Plan (RESP) and take advantage of the CESP program. Contributions to RESPs are not tax-deductible, but all investments in RESPs will grow tax free until they are withdrawn to pay for education expenses.

The Canada Education Savings Program only applies to individual savings plans (ISP) or family savings plans (FSP). A single subscriber can open an ISP and make contributions towards their own child's post-secondary education or training expenses. Alternatively, multiple subscribers can open an FSP which pools money from contributing family members towards one designated beneficiary's future educational costs.

Depending on your income level, you may be eligible for up to $7,200 in annual Government of Canada grants through the CESP program over any 15 year period per beneficiary. This amount includes $500 in annual grants plus 20% additional grant money above what you contribute yourself each year. Please note that the maximum amount per person per year is subject to change depending on government regulations.

To apply for funding through CESP, you must first open a Registered Education Savings Plan (RESP). Once opened, you will be able to claim your entitlements within 60 days of making your contribution(s). You must provide evidence of your eligibility and fill out a request form that can be obtained from your financial institution providing the plan or online at www.canada.ca/cesp

Applications should be sent within 60 days from when you made your contribution(s). It is best to submit as soon as possible so funds are not delayed and/or lost due to processing time delays. Applications must also include documentation such as proof that you meet residency requirements, SIN numbers and other pertinent information as required by your financial institution offering the RESP plan

The money in your Registered Education Saving Plan (RESP) is owned solely by you since it has been placed into trust with an approved Canadian Educational Institution or Financial Institution offering RESPs who have agreed upon terms outlined by the Government of Canada regarding RESPs' administration and management protocols.

Generally speaking there isn't any specific set time frame when funds need to be withdrawn from an RESP account however if no withdrawals are made after 35 years from when initial contributions were made then unused funds will revert back into Government coffers once approved applications have been processed.