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1) What are the specimen plan numbers for RESP accounts?
Mackenzie Family RESPs: 1005002
Mackenzie Individual RESPs: 1005003
2) Our baby was recently born and we have not received the SIN, can we still open an RESP account?
No, MFC requires the SIN of the beneficiary in order to open a new account.
3) Who can get CESG?
Every child up to and including the calendar year in which he/she turn 17 is eligible to receive the grant, provided:
- the child is a Canadian resident;
- the child has a valid social insurance number (SIN);
- the child is named as a beneficiary of an RESP and
- money has been put into the RESP.
HRSDC deposits the equivalent of 20% of the first $2500.00 contribution portion calculated annually to an RESP on a beneficiary's behalf. Every beneficiary can potentially receive up to a lifetime maximum CES Grant amount of $7200. Beneficiaries cannot receive more than this lifetime maximum amount. This lifetime limit applies to, and includes, the Additional CES Grant.
4) Who is eligible to receive the Additional grant?
Additional CES Grant is available on RESPs for children of families who have earned annual combined family income of:
- LESS than $39,066 in 2010 in order to receive up to an additional 20% on the first $500.00 contributed annually in an RESP, or
- LESS than $78,131 in 2010 in order to receive up to an additional 10% on the first $500.00 contributed annually in an RESP.
5) Who is eligible to receive CLB?
A beneficiary is eligible to receive the Canada Learning Bond if:
- He/she was born on January 1, 2004 or later and ;
- The monthly Canada Child Tax Benefit (CCTB) payment includes the National Child Benefit Supplement (NCBS).
- The NCBS is included in the CCTB provided directly to families that earn annually a net combined family income of LESS than $37,178.00 in 2007.
6) Who is eligible to receive Alberta Centennial Education Savings Grant (ACES)?
The Alberta Ministry of Advanced Education and Technology will contribute a basic grant of $500 to the RESP of every child born or adopted to Alberta residents in 2005 and after.
Additional grants of $100 are available to children who turn 8, 11, or 14 after January 1, 2005, provided the children are attending school in Alberta or attending a school that is satisfactory to the Ministry of Advanced Education and Technology. These grants require a minimum $100 invested in an RESP within one year prior to applying.
7) What if the child is 16 or 17 years old?
The Canada Education Savings Grant Program has been designed to encourage long term savings for post-secondary education. There are special rules for children in the years they become age 16 or 17 years old. RESPs for beneficiaries 16 and 17 years old will be eligible only if at least one of the following two conditions is met:
- a minimum of $2,000 of contributions for the beneficiary has been made to, and not withdrawn from, the RESP by the end of the year in which the beneficiary turns 15; or
- a minimum of $100 in annual contributions for the beneficiary has been made to, and not withdrawn from, the RESP in any four years until the end of the year in which the beneficiary turns 15.
8) Are there limits on the amount of money that can be put into an RESP?
Yes, there is a lifetime limit of $50,000 for each beneficiary for all RESPs. Although there are no annual limits for contributions on RESPs, the Canada Eduation Savings Grant will only be paid on the first $2,500 of contributions.
9) How long does it take to receive CESG?
Mackenzie files contributions with HRSDC on a monthly basis, near the beginning of each calendar month. Any applicable CESG (or other program) money is paid out towards the end of that same month, or the beginning of the following month.
e.g. A contribution is made on September 9, 2008. Mackenzie will report this to HRSDC at the beginning of October 2008. Applicable CESG money is paid to the client’s account near the end of October 2008, or the beginning of November 2008.
10) Can one child be the beneficiary of more than one RESP?
Yes, a child can be named as the beneficiary on more than one RESP. However, the lifetime limits to the amount of money that can be contributed for each child is for the total of RESPs held.
11) What paper work is required to add a new beneficiary to a Family RESP?
a) MFC requires a Letter of Direction signed by the account subscriber(s) requesting the additional beneficiary and listing the new beneficiary's:
- Name
- Date of Birth
- Social Insurance Number
- Gender
- Relationship to Subscriber
b) The HRSDC grant application form for the new beneficiary
c) Beneficiary must be under 21 years old
12) What does blood relationship mean?
A blood relationship is that of a parent and child (or other descendant, such as a grandchild or a great grandchild) or that of a brother and sister.
13) Can an adoptive parent be a subscriber on an RESP account?
Yes, whether the child has been legally adopted, or an adoption in fact (a child who is wholly dependent on, and in the custody and control of, the “adopting” parent).
14) What is required to add a new subscriber to an existing RESP account?
MFC requires:
- A Letter of Direction signed by the existing subscriber requesting the addition of the new subscriber to the plan
- A RESP application form signed by both subscribers.
A new HRSDC grant application form is not required, nor will a new account be opened. The existing account number will remain the same.
15) How can one of the subscribers from an existing jointly held RESP account be removed?
MFC requires:
a) A letter of direction signed by both account subscribers asking MFC to remove one of the subscriber’s names.
MFC does not require a new RESP application form or the HRSDC grant application form, but MFC will set up a new account with the one subscriber.
16) How are the contributions allocated between the beneficiaries on a Family RESP account?
By default, all contributions into a Family RESP account are divided evenly between all beneficiaries under 21 years of age.
17) Can we setup special contribution allocations on file for a specific beneficiary on direct and wire orders?
MFC can process special contribution allocations for a specific beneficiary, however we cannot accept standing instructions on file. For each and every direct or wire order purchase, the supporting documentation must be submitted each time in order for MFC to allocate the contribution to a specific beneficiary.
Special allocation instructions for PAC purchases can be submitted once and for all future PAC purchases.
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