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RESPs 


Can I open a Registered Education Savings Plan (RESP)?

Yes, Polaris supports Registered Education Savings Plans (RESPs). 

How do I open an RESP?

To open an RESP at Polaris, you follow the same process as opening any other account. RESPs require more information than other accounts; therefore we will likely have to give you call to complete the process. You can get started by clicking visiting our Get Started page. If you have any questions please contact us. 

Can I transfer an existing RESP?

Yes, you can transfer an existing Registered Education Savings Plan (RESP). You will  need to open an account with Polaris before a transfer can be initiated, and all investments in the account will usually need to be sold prior to the transfer. Polaris typically only accepts cash transfers, not securities. 

Does it cost anything to transfer an RESP from another financial institution?

Most financial institutions charge a transfer fee when a client moves their account to another institution. In most cases, this fee is approximately $125. However, our custodian (BBS Securities Inc.) will refund transfer fees for Polaris clients up to a maximum of $125 providing their account size is at least $25,000. 

Are there tax implications when transferring an RESP?

No, there are no tax implications associated with transferring a Registered Education Savings Plan (RESP) from another financial institution. 

What is the RESP contribution limit for each child?

The lifetime limit of contributions per beneficiary is $50,000. For plans opened after 2007, there is no annual contribution limit. The federal government also provides a grant of 20% of the annual contribution up to a maximum of $500 per year; or $7,200 over the life of the RESP. To receive the maximum annual grant of $500 from the government, contributors need to deposit $2,500 into the plan. 

What is the advantage of having a family RESP vs. individual RESPs?

Family Registered Education Savings Plans (RESP) offer a lot more flexibility, especially for families with more than one child, or planning to have more than one child. 

What if a child doesn’t have a Social Insurance Number (SIN)?

To open a Registered Education Savings Plan (RESP), parents must obtain a Social Insurance Number for their children. To obtain a Social Insurance Number (SIN) for your child, please visit any Services Canada Centre and bring original proof of identity. If you live 100km or more from a Service Canada Centre, you can apply for a SIN by mail. Please visit the Services Canada website for more information.  

Can U.S. citizens open an RESP?

U.S. citizens who open an RESP will have their income taxed by U.S. tax authorities and unfortunately, the money will be taxed again in Canada when it is withdrawn.

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