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Self-Directed Registered Education Savings Plan (RESP)†
A Registered Education Savings Plan (RESP) is a tax-sheltered savings account designed to help families save for their child's post-secondary education. With government grants like the Canada Education Savings Grant (CESG) boosting your contributions, RESPs offer a powerful way to grow your savings. With a self-directed RESP, you have full control over your investment choices, which means you can buy and sell a wide range of eligible investments such as stocks, bonds, mutual funds, Exchange Traded Funds (ETFs), and Guaranteed Investment Certificates (GICs), etc. in the same account.
Building for your Children's Future with a Registered Education Savings Plan (RESP)
A Registered Education Savings Plan or RESP can help you save for a child's future education expenses, and give you access to a wide range of investments. Learn about government grants, different types of withdrawals, and more.
RESP contributions and timelines for 2025
|
$50,000 |
The lifetime contribution limit per child. |
|---|---|
|
December 31 |
Contribution deadline every year, to be eligible for matching government contributions. |
|
$7,200 |
The lifetime maximum CESG amount per beneficiary. |
|
20% |
The CESG limit of your contribution, up to a maximum of $500 per beneficiary per year. |
|
35 years |
Maximum number of years for which an RESP can remain open. |
Comparing RESP to TFSA and RRSP at TD Direct Investing
When you're saving for education, RESPs, RRSP and TFSAs can be an option.
TFSA |
RRSP |
||
|---|---|---|---|
Primary purpose |
Investing for any goal |
Generally, for retirement Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP) withdrawals. |
Investing for children's post secondary education. |
Government contribution match |
Not applicable |
Not applicable |
The Federal Government matches your contribution by 20%, up to $500, every year, and a lifetime maximum limit of $7,200, per beneficiary. Some beneficiaries from families with lower income may be eligible to receive additional government grants. |
Annual contribution limit |
$7,0001 PLUS unused contribution room from previous years |
18% of previous year’s earned income (maximum limits apply), less pension adjustments. |
No annual contribution limit but lifetime limit of $50,000 per child |
Contributions |
Not tax-deductible |
Generally, tax-deductible |
Not tax-deductible |
Unused contribution room |
Carried forward
|
Carried forward |
Carried forward |
Growth |
Tax-free2 |
Tax-deferred |
Tax-deferred |
Taxation on withdrawals |
You’re not taxed on withdrawals |
Funds that are withdrawn are charged a prescribed withholding tax at the time of withdrawal but will be ultimately taxed as income at your marginal rate. This may affect government benefits such as old age security |
When you make a withdrawal to support a child's post-secondary education, your contributions are paid out tax-free. Government grants and investment earnings are considered an Educational Assistance Payment (EAP) and are generally taxable in the hands of the beneficiary. |
Withdrawal limit |
No limit |
Withdrawal limits apply for HBP and LLP. No limit on other withdrawals but subject to withholding tax. |
No limit for refund of contributions. For EAP withdrawals, there is a $8,000 limit if your child is enrolled as a full-time student and a $4,000 limit if enrolled as a part-time student – for the first 13 weeks of the school. |
More investment choices
Got questions? We have answers.
Any unused grant room accumulates and carries forward until December 31 in the year in which they turn 17 years old. This allows you to benefit from the full government grant amount even if you do happen to miss your contribution targets at any point. The government matches 20% of your contributions, up to a maximum of $500 per beneficiary per year. However, if there is unused grant room from a previous year the maximum CESG that will be paid for a given year is $1,000.You can learn more about this here.
If the beneficiary chooses not to enroll in an approved post-secondary education program within 35 years of starting your RESP account, you have the option of funds being used by other siblings in the account. However, if there are no other beneficiaries, then all contributions will be returned to you and the grant money will be returned to the government at the end of the contract. Any earnings or growth in the plan will be paid to you as an "accumulated income payment" (AIP), which is taxable and may also be subject to an additional penalty tax. You can reduce this tax burden by contributing some or all of the amount to your Retirement Savings Plan (RSP). Please speak with your tax specialist as individual circumstances can vary.
As an RESP subscriber, you can request withdrawal of your contributions tax-free at any time. However, government grants and any investment earnings are only paid out to the beneficiary as EAP. If the beneficiary doesn’t pursue higher education, the investment earnings can be paid out to you as AIP and taxed at your marginal rate + 20% (12% for Quebec residents) and all government grants are returned to the government.As an RESP subscriber, you can request withdrawal of your contributions tax-free at any time. However, government grants and any investment earnings are only paid out to the beneficiary as EAP. If the beneficiary doesn’t pursue higher education, the investment earnings can be paid out to you as AIP and taxed at your marginal rate + 20% (12% for Quebec residents) and all government grants are returned to the government.
You can hold a variety of investments similar to those allowed in other self-directed registered accounts. These include:
- Stocks
- Mutual funds
- Exchange-traded funds (ETFs)
- Guaranteed Investment Certificates (GICs)
- Certain Bonds
- Certain Options
Over-contributions will be subject to a tax penalty of 1% per month until the excess amount is withdrawn.
Since 2007, there has been no annual contribution limit.
The lifetime contribution limit is $50,000 per beneficiary.
To withdraw funds from a TD Direct Investing RESP, you must:
1. Determine the type of withdrawal you need to make:
- Educational Assistance Payment (EAP)
- Post-Secondary Educational Capital Withdrawal (PSE)
- Withdrawal for Non-Educational purposes (AIP)
2. Submit your request:
- Online: Submit your request through the WebBroker platform.
- Over phone: Call TD Direct Investing at 1-800-465-5463 between 7 a.m. to 10 p.m. ET Monday to Friday to speak to an Investment Representative.
- TD Canada Trust branch: Complete the RESP Withdrawal Request form and submit it with proof of school enrollment at a TD Canada Trust branch.
Please note, Accumulated Income Payments (AIP) withdrawal requests cannot be submitted using WebBroker or over the phone and must be submitted at a TD Canada Trust branch. In addition, please note, the account will need to be closed by the end of February of the year following payment of the AIP.
For more information, visit this page.
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