RESP contributions have special requirements before certain ages and in the first year. Which statement describes those requirements?

RESP contributions have special requirements before certain ages and in the first year. Which statement describes those requirements?

• A. No special requirements exist.
• B. Specific requirements before age 16 and for the first year.
• C. Contributions are allowed only after age 18.
• D. Only government grants apply when under age 16.

Answer: (B)

RESP contributions are shaped by rules that depend on the beneficiary’s age and on the plan’s opening year. The government uses age-based and year-based criteria to determine when contributions qualify for grants and how much can be contributed. That’s why the statement describing specific requirements before the beneficiary turns 16 and requirements in the first year best fits the topic. If the plan isn’t started at the right time or contributions aren’t made within the eligible years, the related government top-ups may not be available for those contributions. This contrasts with options that ignore the age-related grant eligibility or the essential first-year setup.

RESP contributions are shaped by rules that depend on the beneficiary’s age and on the plan’s opening year. The government uses age-based and year-based criteria to determine when contributions qualify for grants and how much can be contributed. That’s why the statement describing specific requirements before the beneficiary turns 16 and requirements in the first year best fits the topic. If the plan isn’t started at the right time or contributions aren’t made within the eligible years, the related government top-ups may not be available for those contributions. This contrasts with options that ignore the age-related grant eligibility or the essential first-year setup.