[chilly]

Hi all,

I recently set up an RESP account and have a question about the CESG. The maximum CESG grant in our situation would be 500$ per year.

My question is: what does "per year" represent exactly? Is it based on fiscal year, on calendar year, or on the birth date of the child?

So let's say a child was born in the month of june and the family started contributing to the RESP in the month of september.

Would the family only have the months of September to December for first "year" contributions and consequently for CESG grants?

Thanks for your help!

 

[CanadianCapitalist]

My question is: what does "per year" represent exactly? Is it based on fiscal year, on calendar year, or on the birth date of the child?

So let's say a child was born in the month of june and the family started contributing to the RESP in the month of september.

Would the family only have the months of September to December for first "year" contributions and consequently for CESG grants?

Thanks for your help!

Per year is fiscal year.

In the example, the child is eligible for the entire CESG for the year he/she is born.

 

[Four Pillars]

What do you mean by "fiscal year"? Isn't that the same as going by the birthdate?

I think the correct term is "calendar year".

In your example the family would be eligible for $500 in grants for 2009 (the birth year). On Jan 1, 2010 they would then be eligible for another $500 in grants for 2010.

These can be carried forward (with limits) so it's not "use or lose".

 

[moneyconcepts]

So, if you have a baby in December, you not only get the full year of grant eligibility, but you also get the child tax credit for that year too of $2089 for 2009 (equals to about $313 in tax savings =15% x $2,089)

 

[CanadianCapitalist]

So, if you have a baby in December, you not only get the full year of grant eligibility, but you also get the child tax credit for that year too of $2089 for 2009 (equals to about $313 in tax savings =15% x $2,089)

Yes, I believe so.

 

[sprocket1200]

better be calendar year, that is the way we are investing...