As we enter that time of year when many kids are heading off to post-secondary education, two of the most common questions we receive are:
- What is required to make a withdrawal from an RESP?
- How much can I withdraw?
In a follow-up video, we’ll dive deeper into RESP planning, even after your kids have started school, so be sure to watch that as well!
Here’s what you need to provide in order to make an RESP withdrawal:
- Student’s full name
- Name of the institution they are attending
- The program they are studying and the year
- Enrollment status (must be on official letterhead or include a seal)
Typically, the documents that will include all this information are:
- An official enrollment letter from the post-secondary institution
- The student’s account statement showing tuition fees for the academic year (invoice or bill)
- Confirmation of enrollment
Please note: simply providing an acceptance letter, admission offer, or email won’t suffice as proof of enrollment. Official documentation is required.
There are two types of payments from the RESP:
- Educational Assistance Payment (EAP) – This includes the growth and grants within the RESP
- Accumulated Income Payment (IAP) – This is the money you have contributed to the RESP and is separate from the growth and grants
You can withdraw up to $8,000 in EAP (growth and grants) during the first 13 weeks of the program. After 13 weeks, you can withdraw additional EAP (grant and growth) up to $28,122 for the 2024 calendar year. If you need more than the maximum allowable amount, you can withdraw additional funds with proof of education-related expenses. Keep in mind, you can withdraw the contributions you have made to the plan anytime.
We’re often asked whether it’s better to withdraw more than the maximum or just stick to what’s allowable. We’ll be covering this in more detail in our next video, so make sure to stay tuned!
If you have any questions or would like assistance with your RESP withdrawal, feel free to reach out. We’re here to help!
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