Individual and Family Registered Education Savings Plans (RESP)

Use this form to enter or update the subscriber, beneficiaries and contribution history of an Individual or Family Registered Education Savings Plan (RESP).

RESPs require more information than most accounts. The Review and edit accounts page shows a summary of this information, but changes to the subscriber, beneficiaries and cumulative amounts must be made through Edit full details.

RESP contributions are not tax-deductible, but investments grow tax-free while they remain in the plan. Government education grants may also be deposited for eligible beneficiaries.

The TIME MACHINE uses the information entered here to calculate future contributions and grants and to make withdrawals for education EXPENSES associated with the RESP and its beneficiaries.

An Individual RESP can have only one beneficiary. The beneficiary can be a child, the subscriber, the subscriber’s spouse or another person.

A Family RESP can have one or more beneficiaries. Family RESP beneficiaries must satisfy the applicable family-relationship and age requirements. The MoneyReady App provides the available people from your PROFILE and DEPENDENTS, but you are responsible for confirming that they are eligible beneficiaries.

You can change the designation between Individual RESP and Family RESP. An RESP cannot be changed to an unrelated account type.

Newly imported Wealthica RESPs are initially treated as Individual RESPs. Use this form to select the correct designation and enter all applicable beneficiaries.

The subscriber is the person who established the RESP and makes or arranges contributions. The subscriber can be you, your spouse, both spouses jointly or Other.

Although the subscriber may appear as the account’s owner elsewhere in the application, the more accurate RESP term is subscriber.

If the subscriber is Other, contributions in the TIME MACHINE must generally be entered through an AUTOMATIC SAVINGS entry with Other selected as the contributor.

Enter the date the RESP was or will be opened. The date can be in the future.

The TIME MACHINE uses this date to determine when contributions can begin and when contributions must stop. It also uses the date to determine when the RESP must be closed.

If you change the opening date, the dates of linked AUTOMATIC SAVINGS/WITHDRAWALS may be adjusted so that they do not begin before the account opens or continue beyond the applicable RESP deadlines. Review any warnings shown after saving.

Select the province applicable to the RESP. The TIME MACHINE uses this information when calculating supported provincial education incentives. For a Québec RESP, it also calculates the Québec Education Savings Incentive.

Make sure all children who may be RESP beneficiaries have first been entered in DEPENDENTS. The form will also offer you, your spouse and Other as possible beneficiaries.

Check each person who is a beneficiary of this RESP. For an Individual RESP, select only one beneficiary. For a Family RESP, select all applicable beneficiaries.

If you select Other, enter that beneficiary’s birthdate. The birthdate is needed to determine age-based contribution and grant eligibility.

Before removing a beneficiary, review any education EXPENSES or AUTOMATIC SAVINGS/WITHDRAWALS linked to that beneficiary. Those entries are not automatically reassigned to another beneficiary.

For every selected beneficiary, enter the information accumulated up to today:

• CESG carry-forward room: the unused grant eligibility available to the beneficiary;
• Cumulative contributions: all contributions made to this account for the beneficiary;
• Cumulative grants: the grants already received in this account for the beneficiary;
• Cumulative Education Assistance Payments (EAPs): grants and investment growth already withdrawn for the beneficiary’s education;
• Cumulative contributions withdrawn: original contributions already withdrawn from the account.

Update these amounts whenever a contribution, grant or withdrawal occurs. This is particularly useful to review at the beginning of each calendar year.

The contribution and grant limits apply to each beneficiary across all of their RESPs, not separately to each account. The MoneyReady App can combine information for beneficiaries entered in DEPENDENTS. It cannot reliably enforce combined limits when the same person is entered as Other in more than one account.

You can create an AUTOMATIC SAVINGS entry for the RESP and select the intended beneficiary. The TIME MACHINE will apply the contribution and grant limits supported by the application.

The RESP may also receive deposits through your deposit PRIORITIES. If no beneficiary is specified for a Family RESP deposit, the TIME MACHINE assigns contributions among eligible beneficiaries, generally beginning with the oldest, to make use of available grants before eligibility ends.

Enter education costs in EXPENSES and link each expense to the RESP and the applicable beneficiary. The TIME MACHINE will first use available Educational Assistance Payments, consisting of grants and account growth. Those payments are treated as taxable income of the beneficiary.

If additional money is required, the TIME MACHINE can withdraw the subscriber’s original contributions without treating them as taxable income.

An AUTOMATIC WITHDRAWAL from an RESP does not represent an Educational Assistance Payment. It withdraws available original contributions. To model an EAP, use an education EXPENSE linked to the account and beneficiary.

The TIME MACHINE stops contributions according to the account’s opening date and closes the RESP after the applicable period. If money remains when the account closes, it will apply the supported treatment for returning contributions, repaying grants and transferring or taxing remaining growth. Review the warnings in the TIME MACHINE results.

This field is shown only when the growth rate of the RESP’s Cash investment has not yet been entered. This commonly occurs with newly imported Wealthica accounts.

To change an existing Cash growth rate or the value and growth assumptions of other investments, select Edit investments.

After saving, review any warnings concerning beneficiaries, contribution limits or linked entries. You will then continue to the RESP’s investments.