2025 August Newsletter

As your children/grandchildren prepare to head back to school, it’s a great time to check on their RESP accounts — especially if you’ve contributed toward their education. If you are planning to withdraw from your Registered Education Savings Plan (RESP) this year, understanding RESP withdrawal rules can help ensure they’re getting the most value from the plan.  Withdrawal eligibility requirements include:

• Confirming the post-secondary institution is on the list maintained by Employment and Social Development Canada for eligibility
• Ensuring the program your child is enrolled in meets the program length requirements
• Procuring a letter from the university/college that provides proof of enrollment
• Filling out an RESP withdrawal request form (your financial institution can help you with this)
   

Although the income portion of your child's RESP - the grant and any income earned - is considered taxable, the tax impact can be minimal when the student withdraws the funds. Students often have very little income and the tax burden is therefore typically low, even on the taxable portion of the benefit. Capital payments, or withdrawals consisting of prior contributions, are tax-free.

For more details about RESP withdrawal, please visit https://www.moneytalkgo.com/accessing-your-resp.

 

Important reminders

• Prepare a proof of enrollment and contact us for a RESP withdrawal.
• Review your contribution and withdrawal plans to help potentially avoid unnecessary tax.
   

Tips from Jasmine

 

How to Check Your Contribution and Withdrawal Totals

Step 1: Log in to WebBroker and Go to Documents (eServices) under Accounts.

Step 2: Open your latest monthly statement. The last page shows your calendar-year contributions and withdrawals.

 

Please visit my website for more information about tax planning or contact us to confirm your registered account status or open an account.