Question #8 – Registered Plans (RESP)

In order to receive CESG grant in one’s RESP once a beneficiary is 16 and 17 years old there are additional conditions that must be met. Of the following beneficiaries who will receive CESG grant?

  1. Andrew who turns 18 years old on December 30th of this year and whose parents have made annual contributions of $2,000 for him each year.
  2. Brenda who turned 16 years old this year and whose parents made two contributions of $5,000 for her when she was 5 years old and 10 years old. A total of $9,000 was withdrawn when she was 12 years old.
  3. Charlie who turned 17 years old this year and whose parents made annual contributions of $200 for him in each of the past 5 years.
  4. Denise who will turn 16 years old in December of this year and whose parents already made a $2,000 contribution for her in January of this year. This is her first RESP contribution.

Solution: Andrew will not receive CESG grant during this calendar year as he turns 18 this year. Brenda and Denise do not meet the conditions of either having made $2,000 in contributions (and not withdrawn) or $100 in contributions each year for the 4 years leading up to the calendar year in which the beneficiary turns 16 years old. Neither will receive CESG grant. The correct answer is c.