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Benefits of RESP

In RESP account money grows tax-free. It does not mean you will get tax-deduction on the money you put in RESP. They money earned on your investment is taxed at the time of withdrawal for child’s education. Money paid out of the RESP as an Educational Assistance Payment is taxed in the hands of student. Since students can work for only 20 hours in week, so they have low income and taxed at low rate or usually they can withdraw money tax-free.

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