Padgett Business Services » resp

RESP – Save Early, Earn More

Karen — Wed, 03 Mar 2010 04:49:24 +0000

An RESP is a special savings plan. It helps you, your family or friends to save early for a child’s education after high school. RESP is registered by the Government of Canada; it allows savings for education after high school to grow tax-free.

Consider starting a registered education savings plan because the government will match part of your contributions with a Canadian Education Savings Grant. The amount the government contributes annually depends on your net family income. And the earlier you start, the more time you have for the money to compound.

For more information, please visit CanLearn

Registered Educational Savings Plan (RESP)

Karen — Sat, 20 Feb 2010 01:06:59 +0000

An RESP is a savings plan for post-secondary education which allows funds to accumulate on a tax-deferred basis up to certain limits. There is no annual limit for contributions.

For each beneficiary the lifetime limit on contributions is $50,000.

Although there is no tax deduction, the interest and income earned within the plan is sheltered, which means that the tax is only payable on the funds withdrawn to fund the student’s education. And it is taxed at the student’s low rate.

Other Tax Planning Issues

Karen — Tue, 08 Dec 2009 08:17:44 +0000

Consider a Registered Education Savings Plan (RESP) for your children

Review your December income tax installment

Repay outstanding shareholder loans and pay interest on employee loans

Contribute to your spouse’s or common-law partner’s RRSP to the extent of your RRSP deduction limit for 2009. This doubles the amount a couple can withdraw for the Home Buyer’s Plan

Claim your personal tax credits

Keep your transit passes

Pay reasonable salaries to family members

Convert non-deductible debt to deductible interest

Review your will every five years

Split pension income with spouse

Consult your Padgett Business Services

representative to obtain additional tax planning ideas.