Different options available in case your child doesn’t opt for post-secondary education
If your child doesn’t intend to attend the college/university, you can keep the account open for up to 36 years. Moreover, you can transfer the money to another child (for Family RESP plans) though the $ 7,200-lifetime grant limit still applies. Not only that, you can withdraw your original contribution to the RESP tax-free or can transfer up to $50,000, to your RRSP (though for this, the child must be over the age of 21 and the RESP must have been open for at least 10 years having room for contribution).
Sets a good example for your children
RESP also sets a great example for your kids as it can teach them about the value and importance of education so that they may make sustained and dedicated efforts to get higher education.
As we have seen, RESP is not only a way to get ‘free money’ from the government. It is indeed a great tool that saves for your child’s post-secondary education offering you a tax free growth, plenty of investment options, assistance for low-income groups, flexibility of usage and educational value for children.
As an independent insurance advisor working through Punjab Insurance Agency, I deal with different insurance companies offering plans for different types of insurance. I can explain to you in detail, the insurance plan options and coverage that are suitable for your needs and resources. Besides, I can also help you to purchase mortgage insurance, super visa insurance, disability insurance, critical illness insurance, extended medical plans, group medical plans, RESP, RRSP, travel insurance, TFSA accounts, health and dental plans along with estate planning suitable for your needs and resources.
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