The 2008 federal budget increased by 10 years to the time available for contributors, such as a parent or grandparent, to contribute to a registered education savings plans (RESP) for their child or grandchild.
Contributors may now deposit into an RESP plan for a maximum of 31 years-35 years for a taxpayer who is disabled, up from 21 and 25 years respectively.
The contribution age limit for beneficiaries of family plan RESPs has also increased. No contributions may be made on behalf of a beneficiary who is 31 years of age or older, up from 21 years of age previously.
The deadline for plan termination has also been extended. RESP plans may now stay open for 35 years, 1o years beyond the previous 25-year limit. The new deadline is 40 years for taxpayers who qualify for the disability tax credit (DTC), up from 30 years previiously.
