InfoCapsule 12: Grant room and carry forward

From: Employment and Social Development Canada

On this page

• List of acronyms
• Preface
• Carry forward
• Limits and carry forward amounts per beneficiary

Alternate format

A PDF version of the InfoCapsules for RESP providers is available on the index page.

Preface

Unused amounts of the Basic Canada Education Savings Grant (Basic CESG) accumulate for each child until December 31 in the year in which they turn 17 years of age, even if they are not a beneficiary of a Registered Education Savings Plan (RESP).

Since 2007, a $500 amount is added annually to the grant room for each eligible child (for the child born in 2007 or after, the grant room begins as of the year of birth).

Carry forward

Amounts of unused Basic CESG in the current year, which is added to the grant room of an eligible beneficiary for possible use in future years.

Limits and carry forward amounts per beneficiary

A subscriber can contribute $5,000 in a given year to attract the maximum annual Basic CESG amount of $1,000 (only if there is accumulated grant room available as carry forward). This can be done on a yearly basis until all the available grant room has been paid.

Since 2007:

• the annual amount of Basic CESG (added to the grant room) is $500
• the annual limit of Basic CESG is $500 or $1,000 with carry forward
• the amount of contributions required to receive the annual limit of Basic CESG is $2,500 or $5,000 with carry forward