Updated:
Glossary term
RESP — Registered Education Savings Plan
Tax-deferred education savings account. Government adds CESG (20% match up to $500/year, $7,200 lifetime). $50,000 lifetime contribution. Withdrawals taxed to student.
Related terms
CESG
Free government grant inside RESP: 20% match on contributions, $500/year max, $7,200 lifetime per child. 'Gua…
HBP
Borrow up to $60,000 from your RRSP for first home purchase tax-free. Repay over 15 years starting year 2 aft…
CCPC
Private corporation with >50% Canadian-resident ownership. Eligible for SBD — 9% federal corporate tax on fir…
MPC
Medical Professional Corporation — CCPC allowed for licensed physicians (AB, BC, ON, etc.). Same SBD benefits…
SBD
Small Business Deduction: federal corporate tax knockdown for CCPC to 9% on first $500K active business incom…
LCGE
Sell QSBS shares tax-free up to lifetime limit (~$1.27M in 2026, indexed). CCPC-only, 24-month holding + 90%…
Frequently asked questions
How much CESG can I get per child?
CESG is 20% of contributions, up to $500/year and a $7,200 lifetime maximum per child. To capture the full annual grant, contribute at least $2,500/year.
What happens to an RESP if my child doesn't pursue education?
Contributions are returned tax-free; accumulated CESG is returned to the government. Investment growth can be moved up to $50,000 into your own RRSP (if you have room) or withdrawn with tax + 20% (AIP rules).
Want this explained for your situation?
30-minute discovery call, no fee — we'll show how this term applies to your specific case.
Free discovery call