Though contributions are not tax deductible, like an RSP, the money inside the RESP compounds tax free until it is withdrawn. And, like the grant money, any earned income in the plan is taxed in the hands of the student. The family plan Convenience, control MD RESP allows subscribers to have multiple beneficiaries, provided that each beneficiary is related to the subscriber either by blood or adoption. Should one child be destined for an expensive university with another heading for community college, you can apportion the proceeds accordingly. Similarly, if you have three children and one opts out of post-secondary education, you can use the MD RESP to benefit your other children.
School costs The cost of post-secondary education is climbing.
With the MD RESP you have the freedom to build a diversified portfolio to maximize growth. Since there are no foreign content restrictions, you have an opportunity to harness a world of investment opportunities and let them grow tax-deferred for up to 25 years. A wise choice MD RESP is a wise choice because of its simplicity. There are no annual filing requirements. The government pays grant money to the plan trustee directly.