How the plan works
Your contributions are not deductible, but growth is sheltered from tax until withdrawal. Grants and earnings are then taxed in the student’s hands, generally at a low or nil rate.
The federal grant
The federal government pays a grant equal to a percentage of your annual contributions, up to an annual maximum per child, with a lifetime cumulative cap. An enhanced percentage applies for lower-income families.
The Quebec incentive
Quebec adds its own incentive, calculated as a percentage of contributions, with its own annual and lifetime maximums, and an increase based on family income. The two stack on the same contribution.
Catching up on missed years
Unused grant room carries forward, but catch-up is limited to a restricted number of years per calendar year. Starting late does not forfeit the room, but it can prevent recovering all of it before eligibility ends.
Caps and deadlines
There is a lifetime contribution cap per beneficiary, an age limit for receiving grants, and a maximum life for the plan. These parameters are set by law and should be verified with official sources.
If the child does not study
Grants are returned to the governments. Your contributions come back to you tax-free. Accumulated earnings can, under conditions, be transferred to an RRSP or withdrawn with an additional tax. A family plan also allows redirecting to another child.
No rate, price, or recommendation on this page. Amounts and limits change: verify them with official sources before deciding.