Contact an
MD Advisor

MD RESP

Frequently Asked Questions

Deposit amounts and limits

What is the minimum amount required to open an MD RESP?

An MD RESP can be started with as little as $25 per month with our Pre-Authorized Contribution (PAC) program. Set up a PAC for $209 each month to take advantage of the maximum federal grant available (and the maximum Quebec incentive payment if your beneficiary resides in Quebec).

What is the annual deposit limit for an RESP?

There is currently no annual limit as long as the lifetime contribution limit of $50,000 is not exceeded.

What is the lifetime deposit limit for an RESP?

The lifetime contribution limit is currently $50,000 per child.

Can I make a lump-sum deposit of $15,000?

Yes, provided you are still below the lifetime contribution limit of $50,000. However, the Canada Education Savings Grant (CESG) will only pay $500 (20% of the first $2,500). If there is unused grant room from prior years, you may qualify for an additional $500 (20% on the next $2,500) for a total of $1,000. The remaining $10,000 will not be eligible for a CESG.

In addition, when making large lump-sum RESP contributions you should contact Employment and Social Development Canada (ESDC) to confirm remaining lifetime RESP contribution room. ESDC (and the Canada Education Savings Program) can be reached at 1 888 276-3624.

How do I determine the total amount that has been contributed to my child's RESP?

Contact Employment and Social Development Canada (ESDC) to confirm remaining lifetime RESP contribution room. ESDC (and the Canada Education Savings Program) can be reached at 1 888 276-3624.

Eligible investments

What investments can I hold in an MD RESP?

You can hold a wide range of investments in your MD RESP—stocks, fixed-income, MD Funds and third-party mutual funds.

Government grants

What are the specific terms of the Canada Education Savings Grant?

The annual grant is equal to 20% of the first $2,500 of RESP contributions. If there is unused grant room from prior years, you may qualify for an additional $500 (20% on the next $2,500) for a total of $1,000. The maximum lifetime grant is $7,200 per beneficiary.

What about the Additional CESG and the Canada Learning Bond?

The Additional CESG offers Canadian children from low-income and middle-income families an additional 10% or 20% on the first $500 or less contributed to the RESP annually. The Canada Learning Bond offers up to $2,000 for children of low-income families ($25 to open an RESP account, $500 to add to the RESP immediately and $100 per year until the child turns 15).

Is it better to take full advantage of the CESG or deposit the maximum lifetime limit at once?

Unfortunately there is no simple answer. The best course of action will depend on a number of factors like the age of your child and your current RESP contributions. Contact an MD Advisor to determine what the best solution is for you.

What provincial grants am I eligible for?

British Columbia, Saskatchewan and Quebec are currently the only provinces with provincial education savings programs.

The British Columbia Training and Education Savings Grant (BCTESG) will contribute $1,200 to eligible children born in 2007 or later.

The Saskatchewan Advantage Grant for Education Savings (SAGES) provides a matching grant of 10% of eligible contributions up to $250 per year or a $4,500 lifetime grant per beneficiary.

The Quebec Education Savings Incentive (QESI) consists of an annual incentive payment to an RESP for an eligible beneficiary who resides in Quebec, to a maximum of 10% of contributions (maximum payment of $250 in any given year). Your MD Advisor can tell you more about the program.

Your MD Advisor can tell you more about these programs.

RESP provided by MD Management Limited. Member—Canadian Investor Protection Fund.