knowledge topics

RESP Contributions

KNOWLEDGE EXPECTED OF: Both CFP^® Professionals and QAFP^TM Professionals

Identify the requirements to make a contribution to a Registered Education Savings Plan.¹
Identify the annual contribution limit that may be made for each beneficiary to a Registered Education Savings Plan.
- For 1996
- For 1997 to 2006
- For years after 2006
Identify the lifetime contribution limit that may be made for each beneficiary to a Registered Education Savings Plan.²
- For years prior to 2007
- For years after 2006
Identify the tax implication when an excess contribution exists for a Registered Education Savings Plan.²
Identify the parties who are responsible for an excess contribution for a Registered Education Savings Plan.²
Identify the contributions made by the Government of Canada to a Registered Education Savings Plan as part of the Canada Education Savings Program (CESP).³
Identify the basic Canada Education Savings Grant that may be paid on all annual contributions made to all eligible Registered Education Savings Plans for a qualifying beneficiary.⁴
Identify the additional Canada Education Savings Grant based on family net income that may be paid on all annual contributions made to all eligible Registered Education Savings Plan for a qualifying beneficiary.⁴
Identify the maximum Canada Education Savings Grant to which a beneficiary of a Registered Education Savings Plan may be entitled.⁴
- Annually
- Lifetime
Estimate the total Canada Education Savings Grant that may be paid on all annual contributions made to all eligible Registered Education Savings Plans for a qualifying beneficiary.
Identify the amount of Canada Education Savings Grant contribution room that each eligible qualified beneficiary accumulates.⁴
- For years between 1998 and 2006
- For years after 2006
Explain how a beneficiary’s entitlement to the Canada Education Savings Grant may be carried forward.⁴
- From 1998 to 2006
- Maximum limits
Identify the years for which a qualified beneficiary may receive a Canada Education Savings Grant.
Identify the requirements for a 16 or 17-year-old beneficiary to receive a Canada Education Saving Grant.⁴
Identify the amount of Canada Education Savings Grant to which a beneficiary may be entitled.
Identify the requirements for a qualified beneficiary of a Registered Education Savings Plan to receive the Canada Learning Bond.⁵
Identify the amount of Canada Learning Bond to which a qualified beneficiary may be entitled.⁵
Identify the amount of the Canada Learning Bond provided to a Registered Education Savings Plan (RESP) on behalf of a qualified beneficiary.
Identify the impact on Canada Education Savings Grants and Canada Learning Bonds if a beneficiary does not attend a qualifying educational institution or program.^4,5
Identify that other provincial education savings programs may exist.⁶
Explain how each of the factors may impact the suitability of contributing to a Registered Education Savings Plan, such as:
- Expected tax rate of student at time of withdrawal
- Availability of education grants and bonds
Evaluate how each of the factors may impact the suitability of contributing to a Registered Education Savings Plan.

Glossary of Verbs (mouse over to see definition)

Define

To state exactly the meaning of
Identify

To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain

To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Compare

To note the similarities and differences between two or more things
Estimate

To determine an approximate value for
Calculate

To find the value using mathematics
Convert

To change from one form or purpose to another
Evaluate

To reach a conclusion or make a judgement through careful study
Interpret

To give the meaning of / to construe or understand / to translate orally

REFERENCES

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Financial Planning Body of Knowledge

knowledge topics

RESP Contributions

KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals

Glossary of Verbs (mouse over to see definition)

RELEVANT CASE STUDIES

REFERENCES

KNOWLEDGE EXPECTED OF: Both CFP^® Professionals and QAFP^TM Professionals