RESP contribution limits
While there is no annual RESP contribution limit, there is a lifetime maximum of $50,000 per beneficiary. Also, in order to get the maximum CESG grant, you must contribute $2,500 to your RESP per beneficiary per year. You're allowed to contribute to your RESP for up to 31 years, and your plan can remain open for a total of 35 years.
The CESG limit is 20% of your contribution, up to a maximum of $500 per beneficiary per year. The lifetime maximum grant amount per beneficiary is $7,200. As a contributor, you will receive the CESG on only the first $2,500 of your contribution per year. In case sufficient carry forward room exists, you can contribute up to $5000 to receive maximum CESG grant of $1000 per beneficiary per year. or up to the first $5000 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.
Middle and low-income families may be eligible for an additional amount of CESG, known as the A-CESG. This could amount to an extra 10% or 20% of the first $500 contributed to an RESP each year.
All contributions exceeding the $50,000 limit will not attract any grant even if the lifetime maximum grant amount of $7,200 has not been reached. Your RESP contributions are made in the name of an individual beneficiary, even in a Family RESP. If you have additional RESPs open for a single beneficiary, you must ensure that the total contributions do not go over the lifetime maximum. To be eligible for the current years' CESG, make sure you contribute to your RESP before December 31. If your CESG contributions for that year have been maximized, additional contributions will automatically count toward any contribution room left over from the previous year.