Beginning in 2008, the government has enhanced the flexibility of RESPs by extending the contribution period from 21 to 31 years and raising the maximum time that an RESP may remain open from 25 to 35 years. Corresponding changes to individual RESPs for beneficiaries who are eligible for the Disability Tax Credit extend the contribution period from 25 to 35 years and the maximum time that an RESP may remain open from 30 to 40 years.

There is also more flexibility for beneficiaries to access their RESP savings. Beneficiaries who cease to be enrolled in a qualifying post-secondary program after 2007 are eligible to receive education assistance payments (EAPs) for up to six months after they leave the program.

Tags: Investments

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