Author Topic: Frontloading an RESP  (Read 1013 times)

c-kat

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Frontloading an RESP
« on: February 27, 2022, 11:15:53 AM »
We've been putting the 2500 per child into their RESPs and getting the govt 20% match. If we were to put more than that in now, towards future years contributions, would we still get matches in future years?

Lews Therin

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Re: Frontloading an RESP
« Reply #1 on: February 27, 2022, 11:20:26 AM »
Theres a limit.

While there are currently no annual contribution limits, you can receive the Canada Education Savings Grant (CESG) only on the first $2,500 in contributions per year, or up to the first $5,000 in contributions, if sufficient carry forward room exists. Any contributions over and above these amounts will not receive any CESG for the current year or any subsequent years. All contributions exceeding $50,000 limit will not attract any grant even if the maximum $7,200 of grant is not reached.

Mighty Eyebrows

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Re: Frontloading an RESP
« Reply #2 on: March 02, 2022, 12:26:16 AM »
We've been putting the 2500 per child into their RESPs and getting the govt 20% match. If we were to put more than that in now, towards future years contributions, would we still get matches in future years?

Yes, as long as you keep enough of your contribution room to max all the following grant years, you can frontload the rest. Keeping close track of contributions is important. Loonie Doctor has a good post:

https://www.looniedoctor.ca/2017/12/31/optimizing-resp-tips/

Edit: Personally, I don't think the "super" 50k frontload actually works out for most cases, but the 16500 does if you have the extra cash (and your TFSA & RRSP are both full). More debate here:

https://www.financialwisdomforum.org/forum/viewtopic.php?t=122118
« Last Edit: March 02, 2022, 12:54:38 AM by Mighty Eyebrows »