In terms of personal contributions, there is no maximum annual contribution limit, as long as the lifetime personal contribution does not exceed $50,000 per beneficiary. However, there are annual limits to the amount of government assistance, which could influence personal contribution timing. Tax treatment depends on source of the money and timing:
- Personal contributions are after-tax, meaning there is no tax deduction at that time.
- Government assistance is not taxable when credited to a plan.
- While in the plan, there is no tax on income earned on either personal or government contributions.
- When funds are withdrawn, all income and government grant assistance is taxable to the beneficiary when paid as education assistance, but withdrawal of personal contributions is not taxable.
Read more at the Government of Canada website.