Regarding RESP contributions, until what age can contributions be made?

Regarding RESP contributions, until what age can contributions be made?

• A. 15
• B. 17
• C. 18
• D. 21

Answer: (B)

The key idea is that government-grant eligibility for RESP contributions ends at a specific age. Contributions can be made to an RESP up to the end of the calendar year in which the beneficiary turns 17. This cutoff matters because contributions made by that date are eligible for the CESG (Canada Education Savings Grant) and other grants. After age 17, new contributions won’t receive government grants, though the plan can still hold funds and grow tax-sheltered, and it may continue until the plan’s overall lifetime limit. So, the age to remember for grant-eligible contributions is 17.

The key idea is that government-grant eligibility for RESP contributions ends at a specific age. Contributions can be made to an RESP up to the end of the calendar year in which the beneficiary turns 17. This cutoff matters because contributions made by that date are eligible for the CESG (Canada Education Savings Grant) and other grants. After age 17, new contributions won’t receive government grants, though the plan can still hold funds and grow tax-sheltered, and it may continue until the plan’s overall lifetime limit. So, the age to remember for grant-eligible contributions is 17.