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RESP - getting top up by gov't

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  • Jun 26th, 2020 3:10 pm
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[OP]
Deal Addict
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May 6, 2010
2847 posts
274 upvotes
Markham

RESP - getting top up by gov't

We initially set up an account for my son with BMO. We bought some index funds. A few years later, I switched the account to investor line. Now, I'm considering switching all my accounts, including this RESP, to IB. How would I go about to collect the top ups? It's still a year away.
4 replies
Deal Addict
Sep 12, 2007
2458 posts
753 upvotes
From what I read, you can't collect the gov't contributions, they happen at certain times during the year only.
If you find a place that says otherwise, please post here, but I don't believe it's possible.
Deal Fanatic
Feb 4, 2015
6068 posts
2533 upvotes
Canada, Eh!!
For contributions the govt usually pays within 1-2 months.

For other provincial/federal funds the brokerage has to apply [my understanding] so make sure that particular brokerage you want to transfer to has that facility for the specific top up you are expecting.

We just contributed this month so expect 20% top up sometime in July or August.
.......
July 13, 2017 to October 25, 2018: BOC raised rates 5 times and MCAP raised its prime rate next day each time.

2020: BOC dropped rates 3 times and MCAP waited and waited to drop its prime rate to include all 3 drops.
Member
May 2, 2019
359 posts
344 upvotes
Vancouver
dec12 wrote: We initially set up an account for my son with BMO. We bought some index funds. A few years later, I switched the account to investor line. Now, I'm considering switching all my accounts, including this RESP, to IB. How would I go about to collect the top ups? It's still a year away.
There are no RESP accounts at IB, are there. There would be not much benefit for you either, as IB is not that great for passive lowish-balance investing such as RESP (or even TFSA). Just from convenience perspective, maybe, but they just don't have RESP.
Sr. Member
Jul 16, 2019
517 posts
285 upvotes
You can only get the 'top up' which is the CESG grant upto one year back. So if you put in the max for last year and this year, you will get two years of grant which is $500/year to amax of $1000. Beyond that you will not get anything so I would not advise switching anything more than 2 years to collect the grant. There is also a lifetime limit of $7200/child for the CESG grant.
I am not a financial advisor but that was the info I got when I was trying to catchup to missed RESP contribution from past years.
https://www.canada.ca/en/revenue-agency ... -cesg.html

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