Canada Education Savings Regulations

4 (1) The Minister may pay a CES grant in respect of a contribution made to an RESP if

• (a) the trustee enters into a trustee agreement with the Minister that applies to the RESP and includes the terms and conditions set out in section 8;

• (b) the trustee submits, at the request of a subscriber under the RESP, an application for the CES grant

  • (i) for a contribution made after 2004, within three years after the date of the contribution, and

  • (ii) for a contribution made before 2005, no later than December 31, 2007;

• (c) in the case where the beneficiary, in the year in which the contribution is made,

  • (i) attains 16 or 17 years of age, a minimum of $2,000 of contributions has been made to, and not withdrawn from, RESPs in respect of the beneficiary before the year in which the beneficiary attains 16 years of age,

  • (ii) attains 16 or 17 years of age, a minimum of $100 of annual contributions has been made to, and not withdrawn from, RESPs in respect of the beneficiary in at least any four years before the year in which the beneficiary attains 16 years of age,

  • (iii) attains 16 or 17 years of age and the year is 1998, the beneficiary was a beneficiary under an RESP in at least four years before 1998, or

  • (iv) attains 17 years of age and the year is 1999, the beneficiary was a beneficiary under an RESP in at least four years before 1998;

• (d) the total of the contribution and all other contributions to RESPs made, or deemed to have been made for the purpose of Part X.4 of the Income Tax Act, in respect of the beneficiary does not exceed the RESP lifetime limit (as defined in subsection 204.9(1) of the Income Tax Act) for the year in which the contribution is made;

• (e) in the case where the contribution is made after 1999 to an RESP that was entered into before 1999, the RESP complies at the time of the contribution with the conditions for registration set out in subsection 146.1(2) of the Income Tax Act that apply in respect of education savings plans entered into on January 1, 1999;

• (f) the beneficiary is not an ineligible beneficiary; and

• (g) the trustee complies with the terms and conditions of these Regulations and the trustee agreement that applies to the RESP.

(2) Subject to subsection (3), the Minister may pay an amount under subsection 5(4) of the Act if the RESP has only one beneficiary or, if there is more than one, every beneficiary is a brother or sister of every other beneficiary.

(3) If assisted contributions are withdrawn from an RESP after March 22, 2004, the Minister shall not pay the amount under subsection 5(4) of the Act in respect of an individual who was a beneficiary under the RESP at the time of the withdrawal throughout the period that begins on the day of the withdrawal and ends on the last day of the second year following the year in which the withdrawal is made unless

• (a) the withdrawal is made at a time when at least one beneficiary under the RESP is eligible to receive an EAP under the RESP;

• (b) the withdrawal is an eligible transfer; or

• (c) the withdrawal is all or part of an excess amount of contributions to reduce the amount of tax, otherwise payable under Part X.4 of the Income Tax Act, and, at the time of the withdrawal, the excess amount for the year is not greater than $4,000.

(4) At the time a CES grant is paid to an RESP, the trustee shall credit the grant account of the RESP with the amount of the CES grant paid.