Wealth Strategies: RESP - Alberta Government pulls the plug on ACES grants
Milestone Wealth Management Ltd. - Apr 25, 2015
For the past decade, parents who have established Registered Education Savings Plans (RESP) have been able to access the Alberta Centennial Education Savings (ACES) Plan if the children listed as beneficiaries of those plans meet the qualifying.....
RESP - Alberta Government pulls the plug on ACES Plan
For the past decade, parents who have established Registered Education Savings Plans (RESP) have been able to access the Alberta Centennial Education Savings (ACES) Plan if the children listed as beneficiaries of those plans meet the qualifying conditions. To be clear, ACES grants are distributed by the Alberta provincial government and differ from the 20% federal matching that RESP plans receive when the subscriber (parent, grandparent, etc) makes a qualifying contribution to a RESP.
For those who have contributed at least $100 within the past 12 months to a RESP, they may be eligible to access the ACES grants if their child has either been born, turned age 8, 11, or 14. There is a five year carryback rule to access these grants which are $500 at birth or $100 for each of the subsequent ages. Therefore, if your child is an Albertan resident, has been born within the past five years, or has turned 8, 11, or 14 within the past 5 years, it is likely you can access these grants.
Closure of the ACES Grants
On March 26, 2015 the Alberta government closed down this program. However, it is not too late to try and receive some of these grants.
What Can I Do?
If you are a client of Milestone Asset Management, do not worry, we have your back as we keep our clients current on the Federal and Provincial grants.
If you are not a client but have a RESP: Based on the criteria above, if you feel you might qualify for an ACES grant, contact us or your RESP provider to submit an ACES Plan application form to get the ball rolling. There is a July 31, 2015 cut off date to have these forms submitted.
If you are not a client and you do not have a RESP: You still have time, but you need to move quickly. The process would be to contact us or your financial advisor to set up a RESP, make a qualifying contribution and then submit the ACES Plan application form before the July 31, 2015 cut off.
For a broader overview of education grants, please feel free to contact us at Milestone Asset Management or click the ACES sticker below.