Manulife Segregated Fund Registered Education Savings Plan (RESP)

The Manulife Segregated Fund RESP is designed to help investors prepare for their children’s future post-secondary needs.

Benefits of RESP

  • An RESP is a flexible and convenient way to save for a child’s future post-secondary education.
  • Investment income generated in an RESP is tax sheltered as long as it remains in the plan.
  • Government grants may be available to qualified student beneficiaries to help RESP savings grow.
  • There are no annual fees outside of the management expense ratio (MER).
  • A segregated fund contract offers protective features, including death benefit and maturity guarantees.
  • When withdrawn, plan growth and government grants can be taxed at the student’s tax rate (he or she could pay little or no tax on this money).

How does RESP work?

Subscriber enters into RESP contract with Manulife and names Student Beneficiary(ies) under the plan. Governement grants/incentives (as applicable). Subscriber contributes to the RESP. CESG is paid to the RESP. CLB is paid to the RESP. Provincial education savings programs are paid to the RESP. Manulife administers amounts paid into the RESP. Income is not taxable as long as it remains inside the plan.Manulife makes payments from the RESP in accordance with plan terms.

Types of RESP withdrawals

Student Beneficiary enrolls in post-secondary education

  Source Taxation 
Post-secondary Education (PSE) contribution withdrawal RESP contributions Returned tax-free to Subscriber
Educational Assistance Payments (EAP)  RESP earnings, CESG, and other incentives Taxable to Student Beneficiary at his/her marginal tax rate

Student Beneficiary DOES NOT enroll in post-secondary education

Contribution withdrawal
RESP contributions 
Returned tax-free to Subscriber
Accumulated Income Payments (AIP)
Earnings on contributions, grants, and incentives
Paid to Subscriber and taxable at his/her marginal tax rate, plus an additional 20% tax 

CESG: unused grants returned to government; no tax consequences. CLB: returned to government; no tax consequences 

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This is for general information only and should not be considered investment or tax advice to any party.

The Manufacturers Life Insurance Company (Manulife) is the issuer of insurance contracts containing Manulife segregated funds and the guarantor of any guarantee provisions therein. Manulife Investment Management is a trade name of Manulife.