Final answer:
The claim that RESP contributions are tax deductible for contributors is false. Contributions are not tax deductible, but the investments grow tax-deferred and are taxed when withdrawn by a student, who usually has a low income.
Step-by-step explanation:
The statement that one advantage of a Registered Education Savings Plan (RESP) is the contributions would be tax deductible to the contributor and taxable to the student on withdrawal is false. In an RESP, contributions are not tax deductible; however, the investment income earned is tax-deferred until it is withdrawn, at which time it is taxed in the hands of the student, who typically will have a lower income and therefore pay little or no taxes. This differs from retirement savings vehicles like 401(k)s or IRAs where contributions are often tax deductible and taxes on investment earnings are deferred until withdrawal.