# RESP contribution during year of child's birth



## Jerm (Jun 2, 2016)

Hi there, 

My son was born November 10, 2016. I opened an RESP for him in early 2017, contributed $2500, and received the $500 CESG. I plan on doing the same in 2018.

My question - what's the rule for 2016? Am I able to contribute and receive the CESG grant for 2016? He was only outside the womb for less than two months in 2016, and the account was not even created until early 2017. At the time of opening the account I hadn't considered that there may be CESG available for 2016.

Does anyone know the rule on this? Anyone have a link to information regarding a situation like this? I can't imagine its uncommon.

Thanks!

Jeremy


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## Mortgage u/w (Feb 6, 2014)

The grants are applicable from the year the child is born. Therefore, you are eligible for a grant for 2016. The good thing is the program allows you to catch up 1 previous year's time. So you can contribute today $2500 for 2017 and another $2500 for 2016 which will get you up to date. In a few weeks, you'll have access to another $2500 limit (2018).


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## nobleea (Oct 11, 2013)

Correct, the grant and room is not pro-rated during the birth year. Even being born on Dec 31, 2016 would qualify for the full CESG grant and contribution room. It carries over until you max it out.


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## Jerm (Jun 2, 2016)

Right on, thanks guys.


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## Ponderling (Mar 1, 2013)

Also, putting in 2500 annually will not get you to 50k lifetime contribution limit.
I kicked in the 2500 year one, and then every pay raise went to the resp until 50k was in there. 
if grandparents want to help out dear grandchild long term, now is the time, so compounding can work its magic.


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## Jerm (Jun 2, 2016)

I have passed this information on to the grandparents 

They appreciate the power of compound interest


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## Ihatetaxes (May 5, 2010)

Ponderling said:


> Also, putting in 2500 annually will not get you to 50k lifetime contribution limit.
> .


But you will hit max $7,200 in grants after 15 years of $2,500 annual contribution when you are at $37,500 in contributions.


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## Ihatetaxes (May 5, 2010)

Jerm said:


> I have passed this information on to the grandparents
> 
> They appreciate the power of compound interest


My in-laws said they wanted to help with RESP and wrote a cheque one year for $1,000. Haven't seen another but I bet one day they will tell my kids they are glad they helped pay for their education lol.


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## Mortgage u/w (Feb 6, 2014)

Ihatetaxes said:


> But you will hit max $7,200 in grants after 15 years of $2,500 annual contribution when you are at $37,500 in contributions.


That doesn't limit you from contributing more - you just won't get any grants for contributions over the $37,500.


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