Understanding Retroactivity and Canada Learning Bond Eligiblity
The Canada Learning Bond is a vital kick-start to an RESP account that can spark families to build up their children’s education savings. Many parents and community workers are unaware that the CLB was designed to add extra support in years when it may be more difficult to contribute to a child’s RESP. Parents may be able to access this Federal grant even if they are not currently eligible based on their net income.
In fact, if parents have ever been CLB eligible — even for just one year of their child’s life, they will receive at least the initial $500 deposit. If their income dips below the CLB threshold before their child turns 15, contributions of $100 per year of eligibility will be made into their child’s RESP.
Even parents who are unsure of their past or present eligibility should be encouraged to open no-fee RESP so they are ready to take advantage of all possible government grants for which their children may be eligible.
This example shows how a child who’s not currently eligible can still receive a CLB contribution.
| Child’s Age |
Family income is eligible |
CLB Contribution |
| Birth | Yes | $500 |
| 1 | Yes | $100 |
| 2 | Yes | $100 |
| 3 | Yes | $100 |
| 4 | No | $0 |
| 5 | Yes | $100 |
| 6 (RESP Opened) |
No | $0 |
| Total CLB on opening RESP | $900 | |
Understanding the retroactivity of the CLB is vital to ensure that all eligible children receive their CLB. The bottom line is this: even if you don’t know if your child is eligible for the CLB, apply for it. There is no cost and it can lead to a minimum of $500 being deposited in that child’s account. And who doesn’t want that?
By Luke Connell, SmartSAVER Staff.
