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Thread: RESP's

  1. #1
    Proud to be Canadian, eh! ZumbaQueen's Avatar
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    Hi everyone!

    I have a quick question about RESPS. We adopted 3 kids and finally got all the docs in order..... we knew they had RESPs that and we got all the accounts set up at our branch...my question (according to what I've read) that the govt contributes a max of $1000 annually to each account. Do I need to contribute the same amount? Not quite clear on the jargon.

    Thanks!
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  2. #2
    Frosh Canuck EvilTofu's Avatar
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    Congrats on the adoption! :D

    The government contribution is a matching and I think it's only $500 a year. The government matches your contribution by 20% up to $500 a year per child until he/she turns 17 to a maximum of $7,200 matching lifetime. If you don't put money in RESP, you will not get the money. Total maximum contribution is $50,000

    i.e. When you save $2,500 a year for each child, they would each get additional $500 from the government. (If you can only save $1,000, you'd get only $200 from the government) $7,200 is 20% of $36,000. So when you contribute more than $36,000 in total (across 15 years), the government will no longer give you more money. But you can still save up to $50,000 each child and the earning from the money will not be taxed.

    Please check the exact limits, It depends on where you live.
    Last edited by EvilTofu; Wed, May 10th, 2017 at 10:56 PM.
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  3. #3
    Smart Canuck
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    I think maybe where you got the $1,000 idea is if your child did not have contributions and grants in a certain year you can make double contirbutions in subsequent years and receive 1,000 grant until they are caught up on grants. We adopted a little girl when she was almost 5 -she did not have an RESP, so for the years age 5-10 we were able to make double contributions and receive double grants for the 5 years that were missed. Check the details on the govt website or with your bank.
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  4. #4
    Proud to be Canadian, eh! ZumbaQueen's Avatar
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    Thank you for the information!
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  5. #5
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    Congratulations on the adoption and thank you for giving some children a loving home!
    Last edited by Colsgirl; Tue, May 23rd, 2017 at 09:37 PM.
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