IFSE Institute Exam CIFC Topic 10 Question 2 Discussion

Actual exam question for IFSE Institute's CIFC exam

Question #: 2
Topic #: 10

[All CIFC Questions]

Justin and Yvonne both open a Registered Education Savings Plan (RESP) for their daughter Grace. They plan to regularly contribute $1,000 per year until Grace reaches the age of 17.

Which of the following statements relating to RESP is CORRECT?

AJustin and Yvonne may contribute a combined lifetime maximum of $50,000 for Grace.

BRESPs are attractive to Justin and Yvonne because they are tax-free investment plans.

CThere is an annual contribution limit of $2,500 that Justin and Yvonne can contribute to an RESP.

DContributions made by Justin and Yvonne are eligible for a tax deduction in the year they are contributed.

Show Suggested Answer

Suggested Answer: A

by Caitlin at Jun 12, 2025, 01:57 PM

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Kenneth

5 days ago

Option B is correct. RESPs are tax-free investment plans that allow for tax-deferred growth and tax-free withdrawals for educational purposes.

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