The government provides a grant in the amount of 20%
of the annual contribution up to a maximum of $ 400. There is a limit of
$ 4,000 of contributions that can be made on an annual basis for a
beneficiary, however, one only needs to contribute $ 2,000 to take
advantage of the maximum grant of $ 400. It is important to note that
although the ability to contribute the maximum $ 4,000 contribution does
not carry forward, the entitlement to the grant does, according to the
year you establish the plan. Accordingly, we recommend that if you are
thinking about RESP's there is some year end planning considerations.
- Contact your financial institution to establish a plan for each
child, or a family plan.
- Obtain a Social Insurance Number for each child as the financial
institution will need to provide one in order to claim the grant.
- If you wish to take advantage of the full grant, contribute $
2,000 for each beneficiary before the end of the calendar year.
- If you cannot contribute $ 2,000, at least contribute what you can
because the entitlement to the grant of $ 400 will carry forward to
next year. For example, if you do not contribute anything for 1999 and
contribute $ 4,000 in 2000 you will receive a grant in the amount of $
400. However, if you contribute $ 1,000 in 1998 and $ 3,000 in 1999
you will receive $ 200 in grants on account of your 1999 contribution
and an additional $ 600 for the 2000 contribution. Basically, for the
same $ 4,000 contribution this timing results in obtaining an
additional $ 400 in grant monies.
Tax Breaks for Charitable Donations
General Tax Planning Tips
RESP's
The New Foreign Reporting Requirements
Tax Planning for the Owner/Manager
Loans to a Spouse
Consider Buying Assets Before the End of the Year
Pension Adjustment Reversed (PAR)
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