Say hello to Embark!
Lighthouse is honoured to partner with the Embark Student Corp. As Canada’s resource for education savings and planning (RESPs), Embark works tirelessly on behalf of students and their families.
Special Offer: When you enroll three or more beneficiaries into a new Embark Student Plan using the code FAMILY, they’ll boost your account by up to $3,300*
Answers to Commonly Asked Questions About RESPs and Embark
What are the benefits of an RESP over other investment options?
When you contribute to an RESP, the government matches your qualified contributions by 20% – up to $7,200 over the lifetime of your plan – through the Canada Education Savings Grant (CESG). Eligible beneficiaries can also receive additional support through the Canada Learning Bond (CLB) and other grants. Your savings grow tax-free in an RESP. This means that as long as the money is in the RESP, you won’t have to pay any taxes. When withdrawing your grants, contribution income and grant income, otherwise known as an educational assistance payment (EAP), the funds are taxed in the hands of the student, meaning they typically pay very little-to-no taxes on them, due to their low-income tax bracket. Learn more at Embark
What are the limitations of RESPs?
There is a total lifetime contribution limit of $50,000 per beneficiary (across all RESPs), and grants and grant income can only be used for post-secondary education (in some cases, earnings can be deducted by the subscriber as an AIP). Learn more at Embark
What do I need to open an RESP?
- A valid social insurance number (SIN) for both you and each child
you’re saving for* - A Government-issued ID
- Personal information for you and your child(ren)
- Learn more at Embark
Depending on your relationship with the student, you may either be eligible to open a family or individual registered education savings plan for them. See what the difference between the two types of plans are. *A valid SIN is needed for both the subscribers and beneficiaries in order to register your RESP with the Canada Revenue Agency (CRA) for tax exemption and to attract government grants. Learn more at Embark
Who can open an RESP?
Anyone who is a Canadian resident over the age of majority and has a valid SIN can open an RESP for an eligible beneficiary. Family RESPs may only be opened by a parent, grandparent or sibling of the beneficiary(ies) and beneficiary(ies) must be siblings. Individual RESPs can be opened by parents, grandparents, godparents, friends, or the individual themselves, if of legal age. Learn more at Embark
What educational programs qualify for an RESP?
Qualifying programs include courses offered by universities, colleges, trade schools, CEGEPs and other institutions certified by the Minister of Employment and Social Development. The program must be of a minimum duration, which changes based on whether it’s full-time or part-time. Learn more at Embark
What is the Embark Student Corp.?
The Embark Student Corp. is Canada’s expert RESP company. Managing RESPs for more than 600,000 students, education savings and planning is all we do. Each year, we help approximately 60,000 Canadians attend post-secondary school with the help of one of our RESPs. Since our inception, we’ve paid out approximately $8.1 billion to students as part of their education savings. Learn more at Embark
*Terms and Conditions apply.