The government provides a Canada Education Savings Grant of 20% of the first $2,000 deposited to an RESP per child per year. All earnings within the plan are sheltered from tax, and when withdrawn are included in the low income of the student beneficiary. If a beneficiary does not attend college or university, the plan can be switched to another beneficiary or, subject to certain rules, the funds can be transferred to the subscriber's RRSP.