With respect to the tax rules for Registered Education Savings Plans (RESPs), which of the following statements is NOT correct? Earnings paid out of the plan are subject to tax in the hands of the recipient

With respect to the tax rules for Registered Education Savings Plans (RESPs), which of the following statements is NOT correct?

 

		
Earnings paid out of the plan are subject to tax in the hands of the recipient.



		
The total contributions to one individual’s plan cannot exceed $50,000.





		
The annual contributions made by any one individual cannot exceed $4,000.



		
Distributions can be made to a beneficiary of a plan when they commence full-time studies at a qualifying educational institution.