Sophie contributed $5,000 to her nephew's RESP when he was 12 years old. Her nephew has 2 years of unused CESG room from ages 10 and 11, where no contributions were made. His family net income means he qualifies only for the basic CESG. What is the maximum CESG he will receive this year?

Question: Sophie contributed $5,000 to her nephew's RESP when he was 12 years old. Her nephew has 2 years of unused CESG room from ages 10 and 11, where no contributions were made. His family net income means he qualifies only for the basic CESG. What is the maximum CESG he will receive this year?

Answer options:

• $500
• $750 ✅ $1,000
• $1,250

Correct answer: $1,000

Explanation: A beneficiary can receive up to $1,000 of CESG in any given year by using accumulated carry-forward room. Since there are 2 years of unused CESG room, the nephew has $500 (from age 10) + $500 (from age 11) = $1,000 room. With a $5,000 contribution, he can utilize this full $1,000 room, as the annual maximum is $1,000.