As the leaves begin to fall in Ontario, many parents are also reminded of something else that’s seasonal, RESP deadlines. If you’re a parent in Burlington or Sudbury, now is the perfect time to review your child’s Registered Education Savings Plan (RESP) and take advantage of a valuable opportunity: the RESP contribution catch up.
Why Catching Up Matters
The federal government offers a 20% matching grant through the Canada Education Savings Grant (CESG) on contributions up to $2,500 per year. That’s a free $500 every year per child.
But here’s the catch: if you miss a year, you can carry forward unused contribution room — however, you can only catch up one year at a time. That means if you’ve skipped several years, you’ll need to plan carefully to maximize the benefit.
RESP Contribution Limit & Deadlines
- Annual Contribution Limit: $2,500 per child (to receive the full $500 grant).
- Lifetime Contribution Limit: $50,000 per child.
- Catch-Up Rule: You can contribute up to $5,000 in a single year (covering the current year and one missed year) and receive up to $1,000 in grants.
- Deadline: December 31st of each year.
This makes fall the perfect time for parents in Burlington and Sudbury to review their RESP status and make contributions before the year ends.
Example: How Catch-Up Works
Let’s say you missed contributing in 2023. In 2024, you could contribute $5,000 ($2,500 for 2024 + $2,500 for 2023 carryover) and receive $1,000 in government grants.
By consistently catching up each year, you can eventually maximize your child’s RESP benefits without losing free government money.
Why Parents Should Act Now
- Beat the deadline — avoid rushing in December.
- Boost compound growth — the earlier you invest, the more time your contributions and grants have to grow.
- Ensure future flexibility — RESP funds can cover tuition, books, housing, and more.
The Bottom Line
If you’ve fallen behind on RESP savings, don’t panic. The government’s carry-forward rules give you the chance to catch up, but only if you plan and act now. For parents in Burlington and Sudbury, this fall is the best time to rake in those RESP benefits.
👉 “It’s not too late, catch up on RESP contributions before the deadline. Talk to us today.”
