Rules for withdrawing tuition funds from RESPs

Special rules apply to non-residents

When a Registered Education Savings Plan (RESP) matures, the beneficiary of the plan (usually the child for whom the plan was opened) can withdraw the funds for post-secondary tuition. Because they will likely be in a very low tax bracket, little or no tax will be payable on the withdrawals. That’s what makes starting an RESP early so attractive. READ MORE

School’s in session: time to break open the RESP

How RESPs pay out for post-secondary expenses

If you have kids going off to college or university this fall, you’ll be tapping into any savings you’ve made through a Registered Education Savings Plan (RESP). But those payments aren’t treated like a bank account. There are plenty of rules about how they’re administered. READ MORE

The ABCs of RESPs

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How to use RESPs to save for post-secondary schooling

May and June bring thoughts of summer vacations, the end of the school year, and graduations. For many students, post-secondary education is only a few years away. And their parents are often worried they won’t be able to afford to send their kids to university. Unless they start planning now, they could be right. Here’s why. READ MORE

An important tutorial on RESPs

It’s a terrific tax shelter, but you have to know the rules

If you’re considering opening a Registered Education Savings Plan (RESP) to help fund rising college costs, you might find the rules a bit complicated and information that seems to come from several different government departments. To help you get a handle on this powerful tax shelter, here’s a crash course in basic RESP rules and regulations you’ll need to know. READ MORE

A quick course on RESP payments

How to withdraw funds for post-secondary expenses

If you have kids going off to college or university this fall, and you’ve accumulated substantial savings in a Registered Education Savings Plan, now’s the time to tap into those funds. But you won’t be able to use the RESP like a bank account. Your college-bound kid will be getting something called “Educational Assistance Payments,” and they come with a thick handbook of rules and stipulations. Here’s how it works. READ MORE

RESPs and the U.S. residency trap

Are Canadian kids living in the U.S. eligible for RESPs?

While relatives such as grandparents are eager to contribute to their grandkids’ education through a Registered Education Savings Plan, is it even possible if the student lives in the U.S. even though he or she might be a Canadian citizen? And if so, would they have to attend university or college in Canada to benefit from the RESPs. The answer is a little complicated, and much depends on the student’s status as a Canadian resident. READ MORE