knowledge topics
RESP Contributions
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM 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)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
REFERENCES
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/resp-reee/cntrbtns/menu-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/resp-reee/cntrbtns/vrcntrbtns-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/resp-reee/cesp-pcee/menu-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/resp-reee/cesp-pcee/csg-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/resp-reee/cesp-pcee/clb-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/resp-reee/prvncl-eng.html
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