What is the maximum contribution amount in a Registered Education Savings Plan (RESP) per beneficiary?

What is the maximum contribution amount in a Registered Education Savings Plan (RESP) per beneficiary?

• A. $10,000
• B. $50,000
• C. $100,000
• D. $25,000

Answer: (B)

The maximum contribution amount in a Registered Education Savings Plan (RESP) per beneficiary is indeed set at $50,000. This limit applies to the total contributions made during the lifetime of the RESP for each individual beneficiary. RESPs are designed to help save for a child's post-secondary education, and contributions to the plan can grow tax-free until they are withdrawn to pay for qualifying educational expenses. The government also supports these savings with incentives like the Canada Education Savings Grant (CESG), which matches contributions up to certain limits, further encouraging savings for education. While the other options suggest different contribution limits, they do not reflect the actual maximum allowable contributions to an RESP. It is important for individuals to understand these limits while planning for their child's education to maximize the benefits of the RESP structure.

The maximum contribution amount in a Registered Education Savings Plan (RESP) per beneficiary is indeed set at $50,000. This limit applies to the total contributions made during the lifetime of the RESP for each individual beneficiary.

RESPs are designed to help save for a child's post-secondary education, and contributions to the plan can grow tax-free until they are withdrawn to pay for qualifying educational expenses. The government also supports these savings with incentives like the Canada Education Savings Grant (CESG), which matches contributions up to certain limits, further encouraging savings for education.

While the other options suggest different contribution limits, they do not reflect the actual maximum allowable contributions to an RESP. It is important for individuals to understand these limits while planning for their child's education to maximize the benefits of the RESP structure.