landed 04, moved to TO in07. contribute to RESP for 2004, 05 & 06 possible?
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Hi all,
We landed in 2004 and went back after a month. We moved to Canada in 07 and have been contributing to RESP ever since.
Is it possible for us to contribute to RESP for 2004, 05 and 06?
In case we contribute to RESP and the govt grant gets denied, can we remove the money from RESP?
Rgds
New
Location: Western Hemisphere
Posted on: 09-12-09 13:38:47
Quote:
Originally posted by newboyo
Hi all,
We landed in 2004 and went back after a month. We moved to Canada in 07 and have been contributing to RESP ever since.
Is it possible for us to contribute to RESP for 2004, 05 and 06?
In case we contribute to RESP and the govt grant gets denied, can we remove the money from RESP?
Rgds
New
RESP is for your child and is based on the child's year of birth, not when you moved to Canada. In any case, I believe, 1 year of catchup of grant is allowed. You cannot contribute to past years.
So, if your child was born in 2005 and if you contributed $5000 in 2007, you would have received the CESG for 2007 and CESG for 2006.
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Dimple2001
Quote:
RESP is for your child and is based on the child's year of birth, not when you moved to Canada.
It is based on the child’s year of birth in conjunction with when you moved to Canada. For ex if you moved to Canada when your child was 5, you wont get any gov grant for those year. You will be eligible for grant after you moved (child's age of 5 onwards)
Quote:
In any case, I believe, 1 year of catchup of grant is allowed. You cannot contribute to past years.
So, if your child was born in 2005 and if you contributed $5000 in 2007, you would have received the CESG for 2007 and CESG for 2006.
You can catch up even beyond one year. See link from previous discussion
http://www.canadiandesi.com/read.php?TID=24266
Quote:No
Originally posted by newboyo
Is it possible for us to contribute to RESP for 2004, 05 and 06?
Quote:No, your contribution is still a valid contribution.
In case we contribute to RESP and the govt grant gets denied, can we remove the money from RESP?
You won't get the govt. grant but that's a different matter.
There is a lifetime maximum contribution of $50,000 per child I believe.
So as long as your contribution is still within that limit, there's no need to withdraw the money.
If you withdraw, it will get taxed in your hands, rather than in the hands of your child, and will increase your taxable income.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Location: Western Hemisphere
Posted on: 09-12-09 15:06:57
Quote:
Originally posted by rsbagwell
It is based on the child’s year of birth in conjunction with when you moved to Canada. For ex if you moved to Canada when your child was 5, you wont get any gov grant for those year. You will be eligible for grant after you moved (child's age of 5 onwards)
Agreed.
I assumed we all understand that any eligibility is based on after establishing ties to Canada, nothing before that.
Quote:
You can catch up even beyond one year. See link from previous discussion
http://www.canadiandesi.com/read.php?TID=24266
Good to know this. TD did mention what you just said above and then I heard something different (i.e, catchup is for only 1 yr)....so wasn't sure.
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Dimple2001
CESG
As it must be already clear by the replies and links provided in earlier answers that in order to get CESG the student has to be a resident of Canada. In your case, it seems that you only did a landing in 2004, went back and came again in 2007 to reside here permanantly so you and your kids were not resident of Canada for this period and hence not eligible to get CESG.
For more details you can follow this http://www.hrsdc.gc.ca/eng/learning/education_savings/publicsection/faqs_cesg.shtml as well.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thank you all.
