Registered Education Savings Plans
Did you know that, when it comes to withdrawing for post-secondary education, RESPs may be more flexible than you think?
Your client has been saving carefully for their kids’ education, in some cases, since they were born. Now may be the time to make sure they are able to reap the benefits from this unique savings vehicle.
With the school year drawing to a close, many high-school finishers will soon embark upon the next step of their journey.
For some, this means higher education. For others, maybe some time out to consider their options. No matter what the next steps are, everyone can benefit from the flexibility and benefits of their RESP.
To help guide your clients in the coming months, here are the answers to three commonly asked questions:
- Must my child attend university or college in order to benefit from an RESP?
Not at all! Many technical and professional training schools are eligible for educational assistance payments.
💡 Technical and professional training schools: share the List of Certified Institutions with your client.
💡 University or college: share this directory with your client.
- What happens if my child decides not to pursue post-secondary education?
Remember: an RESP can remain open for a maximum of 35 years before it has to be closed, so there’s no rush to decide what to do next. The funds (contributions and grants) will always be available to help your clients' children continue their education.
When an RESP is closed, the contributions are returned to the client and the grants are returned to the government. Investment returns can either be paid as a taxable withdrawal or transferred to the subscriber’s RRSP.
💡 Refer to this article to find out more.
- My child wants to study abroad. Can they use the funds in the RESP?
Of course! A university, college or other post-secondary educational institution located abroad that offers post-secondary education may be recognized for education assistance payments. The list of Designated Educational Institutions recognizes over 2,800 foreign institutions.
For more information, check out your RESP resources portal at:
