Have you been putting off an RESP? It could cost you $500! - Page 4 - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Slava · 06-18-2015, 03:56 PM

Quote:

Originally Posted by bizaro86

Do you get CESG on the ACES, or only on your own contributions?

No its only on your own contributions unfortunately! It would be pretty sweet to get that extra $100, or $20 per ACES deposit though.

Slava · 07-22-2015, 06:59 AM

I figured I would give this one last bump. Applications must be submitted by July 31 for the ACES grant. In full this is worth $500 at birth and an additional $100 when you child turns 8, 11 and 14. If you have been putting this off you are really down to the wire here to get what really is free money for your childs education!

ranchlandsselling · 07-22-2015, 07:55 AM

Quote:

Originally Posted by Slava

I figured I would give this one last bump. Applications must be submitted by July 31 for the ACES grant. In full this is worth $500 at birth and an additional $100 when you child turns 8, 11 and 14. If you have been putting this off you are really down to the wire here to get what really is free money for your childs education!

So if I did my application last month (as posted) we'll get the $100 @ 8, 11 and 14?

Is there another child grant that came out? My mother in law was telling me about one she heard on the radio, I mentioned this one and the child tax credit that got bumped this year. The one they increased and everyone got a huge cheque this month and she said "no, a new one they were talking about on the radio". I'm guessing it's the bumped up one, since it's pretty significant that everyone eligible would have gotten a $520 cheque today for each kid.

Slava · 07-22-2015, 08:01 AM

You only get the grants that you are eligible for by July 31, so really if your child is say 4, you get the $500 and that's it. The grant program expires at the end of the month.

The only grant program for RESPs that remains is the federal CESG. This is the one that gives you 20% of your contributions. I'm not sure what she was referring to, but quite possibly the UCCB that paid out a lump sum this week (which is fully taxable by the way, so don't spend it all in one place!)

ranchlandsselling · 07-22-2015, 08:11 AM

Quote:

Originally Posted by Slava

You only get the grants that you are eligible for by July 31, so really if your child is say 4, you get the $500 and that's it. The grant program expires at the end of the month.

The only grant program for RESPs that remains is the federal CESG. This is the one that gives you 20% of your contributions. I'm not sure what she was referring to, but quite possibly the UCCB that paid out a lump sum this week (which is fully taxable by the way, so don't spend it all in one place!)

So it's expiring and when my 1 year old is 8, 11, and 14 she'll get nothing?
And if I had a 4 year old and had never applied but did in time I'd still get the $500?

I haven't seen the $500 or the 20% (which should be $500) dumped into the RESP account yet...

Lol, what does spending it all in one place have to do with it? If I go to the Cowboys Casino followed by Bass Pro and then the horse track I'm still spending it all... Sounds like a good use of a UCCB!

Coach · 07-22-2015, 08:21 AM

Just to make this easier on everyone:

- If your kid is born in 2005 or later, they are eligible for the $500 grant. BUT you have to apply within 6 years of eligibility, so really, they have to be born in 2009 or later to receive the $500 grant.

- for the 8,11, and 14 year old grants, again you have to apply within 6 years of them turning that age.

So while they may qualify age-wise, if they weren't applied for in time, they are not eligible. Not sure if this is posted in here already.

Slava · 07-22-2015, 08:29 AM

Quote:

Originally Posted by ranchlandsselling

So it's expiring and when my 1 year old is 8, 11, and 14 she'll get nothing?
And if I had a 4 year old and had never applied but did in time I'd still get the $500?

I haven't seen the $500 or the 20% (which should be $500) dumped into the RESP account yet...

Lol, what does spending it all in one place have to do with it? If I go to the Cowboys Casino followed by Bass Pro and then the horse track I'm still spending it all... Sounds like a good use of a UCCB!

MattyC has all your questions covered for you. I don't know why you haven't seen grant money yet, but maybe because you applied with a subpar company/advisor (not me!)

I was kidding about the spending it all in one place. Truthfully you could put that money into an RRSP and nullify the tax consequences, or make a donation to a political party for the upcoming election and also nullify taxes. It's a little disingenuous for them to put this forward like some amazing plan right before the election when it's definitely not without its drawbacks...but that's for another thread. The money here really is no strings attached if it's used for your child's education.

Coach · 07-22-2015, 08:43 AM

Quote:

Originally Posted by Slava

MattyC has all your questions covered for you. I don't know why you haven't seen grant money yet, but maybe because you applied with a subpar company/advisor (not me!)

Could be just what their crew is doing with the grants. I know, for me as the account documentation person in our team, I had to go through our whole client base, figure who was eligible for what (IE check birthdates of all beneficiaries), and send them all their docs. I got so many back at such different times that I've just started putting them through over the last couple weeks just because it was easier on me to collect them all, find out who hadn't sent in and who did, and process them all at once.

Also, the grants don't always get paid right away. I'd have to ask our RESP dept, but they might not pay until after the deadline, even though you applied for it a month or so ago. I believe they only pay twice per year. And since you have until the 31st to apply, I would bet the grants aren't actually paid until August or September.

Bill Bumface · 07-22-2015, 09:17 AM

Luckily my kid will be born just after this expires. I guess I'll just spend their education money on beer.

ranchlandsselling · 07-22-2015, 09:39 AM

Quote:

Originally Posted by Slava

I was kidding about the spending it all in one place.

Me too!

bizaro86 · 07-22-2015, 11:20 AM

Quote:

Originally Posted by Bill Bumface

Luckily my kid will be born just after this expires. I guess I'll just spend their education money on beer.

Beats them spending it on beer

Seriously though, the money from the Feds that everyone with kids just got is taxable, but its taxable in the bracket of the lower earning spouse. Since my wife is still at home, her income is very low, so not much tax payable. We dumped the ~$500 into the RESP to finish off this year's contributions.

Granted that will probably hurt my "family tax cut" savings from income splitting...

Slava · 07-22-2015, 11:26 AM

Quote:

Originally Posted by ranchlandsselling

So it's expiring and when my 1 year old is 8, 11, and 14 she'll get nothing?
And if I had a 4 year old and had never applied but did in time I'd still get the $500?

I haven't seen the $500 or the 20% (which should be $500) dumped into the RESP account yet...

Lol, what does spending it all in one place have to do with it? If I go to the Cowboys Casino followed by Bass Pro and then the horse track I'm still spending it all... Sounds like a good use of a UCCB!

One thing that just dawned on me is that I would call and make sure that the grants are in process. I know that this sounds ridiculous, but there were/are some providers of RESPs that weren't applying for the ACES grants. This will be a moot point in a little more than a week, but that issue caused me to not use some companies. You would hate to find that out after the fact.

Coach · 07-22-2015, 12:23 PM

Just to confirm, if you have applied after June 30th, you wont have the grants actually pay until September.

ranchlandsselling · 07-22-2015, 12:43 PM

Quote:

Originally Posted by Slava

One thing that just dawned on me is that I would call and make sure that the grants are in process. I know that this sounds ridiculous, but there were/are some providers of RESPs that weren't applying for the ACES grants. This will be a moot point in a little more than a week, but that issue caused me to not use some companies. You would hate to find that out after the fact.

Scotia Itrade? Maybe I'll give them a call.
Thanks

Sylvanfan · 08-01-2015, 06:32 PM

I literally made the deadline by 2 minutes last night. Walked in at 7:50 and they got my daughter added just in time. I must admit that young kid knew his way around the computer better than anyone I have ever seen working at a bank.

Thanks for the thread bump or I never would have done this.

ranchlandsselling · 12-31-2015, 09:05 AM

So, looking at 2016 I've got a single RESP that I maxed out at $2,500 last year and I received two grants for $500.

In 2016 I should contribute $2,500 again and the Government will match $500 correct?

Do I need to notify the Government or does it just happen when I add money to the account? It's a self directed RESP on Scotia iTrade

Thanks!

Slava · 12-31-2015, 09:13 AM

Right. The two $500 grants you received were the Alberta (ACES) grant for $500 and then the $500 for the CESG (federal) grant. Going forward you can still receive that CESG for another $500. As far as what actually happens it depends on your provider; I assume they are going to apply for that grant for you every year (or every deposit), but it depends on their rules and procedures.