The Student Education Accounts program has been established to help us meet the financial challenge of paying for the education of our young people in a time of steadily increasing costs. A post-secondary education is an important part of preparing our youth to be motivated, thoughtful, and well equipped Christians in a diverse world. This program combines a flexible savings plan with a grant possibility, to help contributors maximize the funds available for education. This program is operated within the framework of the Stewardship Ministries Deposit Fund.
Any person you wish to, however deposits made by you after the end of the calendar year in which the Student Beneficiary reaches the age of 13 years, will not result in payments into the Education Grant Reserve.
You open an account designating a young person under the age of 13 years as the “Student Beneficiary” and providing his or her Social Insurance Number and birth certificate.
You contribute amounts to the account from year to year. There is no limit to the amount you may contribute.
You remain the owner of the account at least until the student is 18 years of age.
An Education Grant Reserve is set up by the Canadian MB Conference when you open a Student Education Account. At the end of each calendar year, up to and including the year in which the Student Beneficiary reaches the age of 13, the Conference pays into the Reserve, an amount equal to 20% of the value of your deposits in that year, up to:
An annual maximum of $1000
A total account maximum of $5000
The amount in the Education Grant Reserve earns interest at the same rate as the Student Education Account.
THE EDUCATION GRANT RESERVE IS TERMINATED IF ANY WITHDRAWAL IS MADE FROM THE STUDENT EDUCATION ACCOUNT BEFORE THE STUDENT BENEFICIARY’S 18TH BIRTHDAY.
You can withdraw money from the Student Education Account for the student, any time after he or she reaches the age of 18.
You can transfer ownership of the account to the student at any time after he or she reaches the age of 18 years. The student can then withdraw the money without restriction.
After you transfer the account to the student, any interest earned and any grant paid becomes the taxable income of the student.
The student beneficiary will qualify for an Education Grant from the Education Grant Reserve, for its full amount, if the following conditions are met
The Student Beneficiary has reached the age of 18 years but is under the age of 26 years;
The Student Beneficiary is enrolled in a qualifying education program. A qualifying educational program must:
Run three or more consecutive weeks,
Require the student to spend 10 or more hours per week on courses or work in the program,
Be at the post-secondary level, and
Be offered by a seminary, university, Bible school, college, technical school, or by such other institution approved under the Canadian MB Conference Education Grant program.
The Student Beneficiary has applied to the Conference for an Education Grant, using the prescribed form, and providing proof, of attendance under a qualifying educational program.
The Grant will be paid to the Student Beneficiary, or transferred into the Student Education Account.
The Grant will be taxable investment income to the person who owns the Student Education Account at the time of payment. In most cases it will be advantageous for you to transfer the account to the student at age 18, since the student will have little taxable income.
The Canadian Conference of Mennonite Brethren Church of North America is a charitable organization and not a financial institution. This Account is not government guaranteed or insured by the Canadian Deposit Insurance Corporation. This web page is for general information only and is not intended to provide legal or tax advice.
