Canada Education Savings Grant

Disclaimer: RESP promoters

The information contained on this page is technical in nature and is intended for Registered Education Savings Plan (RESP) and Canada Education Savings Program promoters. For general information, visit the RESP section.

Official title: Record-keeping requirements for RESP contributions for 16 and 17 year olds

Information Bulletin

Bulletin No.:
CESG/SCEE-2003-01
Date:
June 2, 2003
Subject:
Notice #085 - Record-keeping requirements for RESP contributions for 16 and 17 year olds

This information bulletin is being issued in response to frequent questions received from promoters about grant applications for 16 and 17 year old beneficiaries of an RESP. It clarifies the record-keeping requirements for Canada Education Savings Grant (CESG) requests on RESP contributions made after December 31st of the year a beneficiary turns 15. These are not new requirements.

Record-keeping Requirements

RESP contributions made after December 31st of the year that an RESP beneficiary turns 15 are only eligible for grant if certain minimum prior contributions have already been made for that child (see next page for details). Promoters must be able to demonstrate that these minimum prior contributions were made for the beneficiary before applying for grant on any future contributions.

Some promoters can confirm through their accounting systems that the minimum contributions were made within their own RESPs. If your system does not have this capability, or if the minimum contributions were made at more than one promoter, you should obtain a written confirmation from the subscriber that the required minimum contributions were made for the child. The Application for Canada Education Savings Grant contains a statement that you can use for this purpose.

We would like to clarify that it is not necessary for promoters to obtain copies of statements or receipts for contributions made at another RESP provider. The subscriber's written confirmation is sufficient.

Monitoring by CESG Program

The Canada Education Savings Grant Program verifies through compliance reviews that the CES Grant regulations are being monitored by promoters. Promoters should be able to provide confirmation that the beneficiary continues to be eligible for grant, either through their accounting records, or by having the subscriber's written statement on file. If not, promoters should not apply for grant on any contributions made after December 31st of the year of a child's 15th birthday. The CESG Program may request grant repayment for any grant received on those contributions that cannot be supported with appropriate records as outlined above.

Background - Grant Eligibility Past Age 15

To be eligible for grant on RESP contributions made after December 31st of the year a child turns 15, there must already be RESP contributions made in the child's name. By December 31st of their 15th year:

  • these prior contributions must total $2,000, OR;
  • there must have been at least $100 contributed for the child every year for any 4 years. The four years do not have to be consecutive.

The contributions can be made into any number of RESPs for the child to qualify. These rules can be found in CES Grant Regulation 5(c)

If these prior minimum contributions are not made, or if they are subsequently withdrawn from the RESP, the child no longer qualifies for grant after December 31st of the year he turns 15.

Enquiries

Questions on this Information Bulletin should be directed to the CESG Program by e-mail at cesp-pcee@hrsdc-rhdcc.gc.ca, or by calling 1-888-276-3624.

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