Definitions
Beneficiary
A Beneficiary under a Registered Education Savings Plan is an individual named by the subscriber who will receive Educational Assistance Payments if the individual
qualifies for these payments under the terms of the plan.
Subscriber
A person including a public primary caregiver, who enters into an RESP contract with the promoter is the subscriber. The subscriber agrees to contribute to the
contract on behalf of an individual named under the plan as a beneficiary.
Capital/Principal
Contributions made by the subscriber(s).
Grant
Refers to Canada Education Savings Grant (CESG), Additional Canada Education Savings Grant (Additional CESG), Canada Learning Bond (CLB),
Alberta Centennial Education Savings Grant (ACES) and Quebec Education Savings Incentive (QESI).
Additional Canada Education Savings Grant (Additional CESG)
The Additional CESG is an enhanced federal government grant for a qualifying beneficiary whose Primary Caregiver's family net income meets the income thresholds
stipulated by CRA each year. Public Primary Caregivers must receive payments under the Children's Special Allowances Act.
Alberta Centennial Education Savings Grant (ACES)
ACES is an Alberta government grant for children of Alberta residents who meet the eligibility requirements.
Canada Education Savings Grant (CESG)
Canada Education Savings Grant means a grant paid by Employment and Social Development Canada to the RESP trustee for deposit on behalf of the beneficiary.
Canada Learning Bond (CLB)
The CLB is an additional federal government grant for a Canadian resident beneficiary born after 2003 whose Primary Caregiver is in receipt of the National Child
Benefit Supplement. Public Primary Caregivers must receive payments under the Children's Special Allowances Act.
Quebec Education Savings Incentive (QESI)
The Quebec Education Savings Incentive is a refundable tax credit that is paid by Revenu Québec to the RESP on behalf of a beneficiary who resides in Quebec.
Educational Assistance Payment (EAP)
An Educational Assistance Payment consists of income (growth) and grant and is paid to or for an individual (called the beneficiary) to assist with the beneficiary's
education at the post-secondary school level.
A beneficiary cannot receive more than $5,000 in the form of an EAP during the first 13 weeks of his or her post-secondary education. Beneficiaries studying part-
time are entitled to receive $2,500 of EAP every 13 weeks.
EAPs to the plan's beneficiary can begin once he/she becomes a full-time student or part-time student enrolled in a qualified post-secondary educational program or
within six months after the end of the term. Non-residents are not eligible for CESG as a portion of their withdrawal and will be charged non-resident tax on the
income portion of their withdrawal. The maximum amount of grant a beneficiary can receive is $7,200.00.
Values used to Calculate an EAP
A = amount of the EAP
B = balance in the beneficiary's CLB account of the RESP immediately before the EAP is made
C = fair market value of the property held in connection with the RESP immediately before the EAP is made
D = total of all contributions made to the RESP before the EAP is made that have not been withdrawn
E = total in all CLB accounts of the other beneficiaries under the RESP immediately before the EAP is made
F = balance in the CESG account of the RESP immediately before the EAP is made
G = total of all amounts paid into the RESP under a designated provincial program (total of all provincial incentive account balances in the RESP immediately before
the EAP is made)
Post Secondary Capital Withdrawal (PSE)
Post Secondary Capital Withdrawal is a withdrawal of contributions made by the subscriber during the time a beneficiary is eligible to receive EAPs.
Since the beneficiary is pursuing post-secondary education, the subscriber may withdraw his/her contributions without being required to repay any grant amounts.
Non Educational Capital Withdrawal
Non Educational Capital Withdrawal is a withdrawal of contributions made by the subscriber during the time a beneficiary is not eligible to receive EAPs. Since the
beneficiary is not pursuing post-secondary education, the subscriber may withdraw his/her contributions but may be required to repay some or all grant amounts.
Post-Secondary Educational Institution
A Post-Secondary Educational Institution can be any of the following:
a) A university, college, or other educational institution in Canada that has been designated for purposes of the Canada Student Loans Act or the
b) Canada Student Financial Assistance Act, or is recognized for purposes of the Quebec Student Loans and Scholarships Act.
c) An educational institution in Canada certified by the Minister of Employment and Social Development to be providing courses, other than courses designed
for university credit, that give a person occupational skills or improve a person's occupational skills.
d) A university outside Canada that provides courses at a post-secondary school level provided the beneficiary is enrolled in a course that runs at least 13
consecutive weeks.
e) A college or other educational institution outside Canada that provides courses at a post-secondary school level, provided the beneficiary is enrolled in a
course that runs at least 13 consecutive weeks.
Proportion to take from all available amounts
If the RESP has earnings If the RESP has no earnings
A / (C - D - E) A / (B + F + G)
