InfoCapsule : Grant room and carry forward

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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.

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12. Grant room and carry forward

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.

Note: Grant room and carry forward do not apply to the Additional CESG.

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
Example: Child born in 2015 and RESP opened in 2016
Year Annual amount of Basic CESG added to grant room Accumulated grant room RESP contributions Basic CESG 20% rate Carry forward to next year
2015 $500 $500 $0 n/a $500
2016 $500 $1,000 ($500 + $500) $1,000 $200 $800 ($1,000 - $200)
2017 $500 $1,300 ($500 + $800) $2,000 $400 $900 ($1,300 - $400)
2018 $500 $1,400 ($500 + $900) $6,000 $1,000 (annual limit) $400 ($1,400 - $1,000)
2019 $500 $900 ($500 + $400) $0 n/a $900 ($900 - $0)
2020 $500 $1,400 ($500 + $900) $4,000 $800 $600 ($1,400 - $800)
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