Which statement regarding contributions to an RESP is false?

Contributions to a Registered Education Savings Plan (RESP) are indeed flexible in terms of timing, and they can be varied from year to year. However, the statement that contributions are tax deductible by the contributor is false. Unlike other registered accounts such as RRSPs (Registered Retirement Savings Plans), contributions to an RESP do not provide a tax deduction for the contributor. Instead, the primary tax benefit of an RESP comes from the tax-deferred growth of the investment and the government grants, such as the Canada Education Savings Grant (CESG), that can be added to the contributions.

The confusion can arise from the nature of tax benefits associated with different types of registered accounts. RESPs encourage savings for education but are structured differently from retirement accounts. Understanding this key difference provides clarity on how contributions to each type of account are treated for tax purposes.