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Increasing Your Savings Through the Canada Education
Savings Grant (CESG)
The Canada Education Savings Grant Program,
established by the federal government, aims to encourage parents to invest
in the postsecondary education of their children.
This grant corresponds to 20% of the annual
contributions paid into an RESP, up to a maximum of $500 per year, per
beneficiary. The lifetime maximum grant paid per beneficiary cannot exceed
$7,200.
The grant amounts received accumulate tax sheltered
in the RESP. During the beneficiary’s postsecondary education, these
amounts will be added to income paid in the form of educational assistance
payments. The CESG does not affect the allowable contribution limit per
beneficiary.
If no contribution is made for a given year
or if the contributions paid are lower than the contributions required
to obtain the maximum CESG ($500), you may carry forward unused CESG room
to subsequent years, as long as the beneficiary is eligible. However,
the total annual grant amount paid cannot exceed $1,000.
Canada
Education Savings Grant Program
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