With an RESP contributions have been taxed at the contributors tax rate. Any investment growth that occurs inside the RESP is taxed
upon withdrawal at the recipient's tax rate.
Generally an RESP recipient is a post-secondary student. These individuals will in general pay little or no federal income tax due to the fact that they will have tuition and education tax credits to reduce there income tax payable.
The maximum lifetime contribution is $50,000 and any contribution above this amount is subject to taxation. This income is available to a post-secondary student upon withdrawal from the RESP.
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