What is a false statement regarding Theo's establishment of an RESP for his son?

The assertion that the maximum annual contribution Theo can make to Jordan's RESP for any given year is capped at $4,000 is indeed a false statement. Actually, there isn't a specific annual contribution limit set at $4,000 for Registered Education Savings Plans (RESPs). Instead, the total contribution limit for an RESP is $50,000 per beneficiary, which can be contributed over the life of the RESP. This means Theo can contribute more than $4,000 in a single year, as long as he stays within the overall lifetime contribution limit for the RESP.

In contrast, individual contributions to an RESP do not receive tax deductions, aligning with the statement about contributions not being tax-deductible. Furthermore, the RESP can be utilized for educational purposes at any point in the future when the beneficiary is eligible, which is why that statement is accurate. Lastly, any unused contributions can indeed be carried forward to future years, allowing additional contributions to be made over time while respecting the overall contribution limits. This context around the RESP provides clarity on why the chosen statement is incorrect in the context of the RESP framework.