Answer...

Here is the anser to this Frequently Asked Question.

What are the benefits of setting up an RESP for my children?

You can contribute up to $4,000 a year (per beneficiary) for 21 years to a maximum of $42,000.

RESP contributions are not tax-deductible so you won’t receive tax receipts for your contributions. Contributions are made with after-tax money. RESP money can be used to pay for tuition, books, accommodation – in fact, anything that will assist the beneficiary during his or her studies. While you can take out your contributions, tax-free, at any time, the growth portion of the RESP can only be withdrawn if the beneficiary is actually enrolled in a qualifying education program.It will be taxable to the beneficiary as "other income". To withdraw income, the beneficiary must be enrolled full-time in a qualifying education program at a designated university, community college, Cegep, Canadian junior or technical college, or university outside Canada. If your child completes his or her education and there’s money remaining in the plan, you can name another beneficiary. An RESP matures in 25 years, if money remains in the plan, you may request that the principal amount of contributions be returned to you, the beneficiary, or be transferred to another account. And provided certain conditions are met, you can transfer up to $40,000 of accumulated RESP income to your RRSP.