Maximizing Your Child’s RESP and CESG

I have a 13 year old son for whom I just opened an RESP in 2013. How much would I have to annually contribute to the RESP in order to catch up and maximize on the savings grant that the government contributes before my son turns 18?

This is a good question. The maximum Canada Education Savings Grant (CESG) you can get in one year is $1,000 – this corresponds to a contribution of $5,000. If your income is in the lowest tax bracket (less than $43,561 for 2013) you're entitled to an additional $100 grant on the first $500 you contribute, so your $1000 maximum would be $1100.

No CESGs are payable after the year your child turns 17. In addition, to get the grant when your child is 16 or 17, you must have made an RESP contribution of at least $100 in at least four of the years before your child turns 15. This means that if you’ve not already contributed at least $100 in each of the last two years, it’s now too late for you to qualify for grants after your child turns 15. The maximum CESG that you can earn will be based on your contribution for years when your child is 13, 14, and 15.  During those three years you need to contribute at least $5,000 each year to maximize the grants.