How can you choose the right RESP?
Additionally, you cannot be considered your blood relationship. The best part about the family plan is that you can share the earnings between the kids, and the RESP is mainly used for beneficiaries named under the program up to $7200. If all the beneficiaries are siblings under the plan, then an additional Canada education savings grant and the Canada learning bond can be paid.
It is also known as the non-family plan, and if you are not related to the child, you plan to save for it. Under this plan, only one beneficiary is named, and they don’t need to be related to you by blood or so. You can open this plan for yourself or any other person. But the Canada education savings grant and Canada learning bond are likely to be paid to the eligible beneficiaries only.
Perks of RESP
You can get several tax benefits when you open a Registered Education Savings Plan account as it is a tax-advantaged account, and your money can quickly grow tax-free. The best of all is that withdrawals are tax-free, so you don’t need to stress. But you need to know that investment gains are taxable, and the responsibility to pay the tax gains fall on your kids.
To know more about Registered Education Savings Plan, contact Ez Financial.