Page 68 - A Canuck's Guide to Financial Literacy 2020

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Beneficiaries qualify for a grant on the contributions made on their behalf before the end of
the calendar year in which they turn 17 years of age.

Keep in mind that there are specific contribution requirement rules for children who are 16
or 17 years old. In order for children in that age group to receive government grant, they
must have met one of the following:

• a minimum of $2,000 contribution has been made, to and not withdrawn from,
RESPs in respect of the beneficiary before the year in which the beneficiary turns 16
• a minimum of $100 annual contributions has been made and not withdrawn from,
RESPs in any of the last 4 years

Additional CESG

ESDC will contribute an additional amount of grant for each qualifying beneficiary
depending on your family income.

For 2017, the additional CESG rate on the first $500 contributed to an RESP for a
beneficiary who is a child under 18 years of age is:

• 40% (extra 20% on the first $500), if the child's family has qualifying net income for
the year of $45,916 or less; or
• 30% (extra 10% on the first $500), if the child's family has qualifying net income for
the year that is more than $45,916 but is less than $91,831.

Canada Education Savings Grant Summary Chart

more than
$45,916 or More
Adjusted income for 2017 $45,916 but less
less than $91,831
than $91,831

CESG on the first $500 of 40% = $200 30% = $150 20% = $100
annual RESP contribution

CESG on $501 to $2,500 of 20% = $400 20% = $400 20% = $400
annual RESP contribution

Maximum yearly CESG
depending on income and $600 $550 $500
contributions

Lifetime maximum CESG for $7,200 $7,200 $7,200
which you may qualify