Mozaic Finance glossary Registered accounts

RESP: the Registered Education Savings Plan, explained

The RESP is the account Canadians use to save for a child's education, and it comes with free money: the government matches part of your contributions with grants.

A Registered Education Savings Plan (RESP) is a registered account that helps families save for a child's post-secondary education. Its standout feature is the government grant that tops up your contributions.

How an RESP works

  • There is no annual contribution limit, but a lifetime maximum of $50,000 per beneficiary.
  • The Canada Education Savings Grant matches 20% of contributions, up to $500 per year and $7,200 per beneficiary over the life of the plan.
  • Contributions are not tax-deductible, but growth and grants are tax-deferred inside the account.
  • When the child enrolls in a qualifying program, Educational Assistance Payments are taxed in the student's hands, usually at a low rate.
  • If the child does not pursue post-secondary education, there are rules for transferring or withdrawing the funds, and grants may have to be repaid.

How Mozaic tracks your RESP

In Mozaic, RESP is a first-class account type. Connect it through SnapTrade or Plaid, or add it by hand, and its balance and holdings roll into your net worth.

Mozaic tracks the value of the RESP as an account. It does not track grant room or grant eligibility, which you manage through your RESP provider and the government.

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Frequently asked

Through the Canada Education Savings Grant, the government matches 20% of your contributions, up to $500 per year and a lifetime maximum of $7,200 per beneficiary. Lower-income families may qualify for additional grants.
No. Unlike an RRSP, RESP contributions are not tax-deductible. The benefits are the government grants and the tax-deferred growth, and withdrawals for education are taxed in the student's hands, usually at a low rate.
Yes. RESP is a first-class account type in Mozaic: connect it or add it by hand, and its balance and holdings roll into your net worth. Mozaic tracks the account value, not your grant room.