![]() You can use the money in the RESP to pay for education right away or keep it for future education. It is taxed at the regular income tax rate of the subscriber, plus an additional 20% (or 12% for subscribers residing in Quebec).įor more information, consult the section about taking money out of an RESP from the Canada Revenue Agency. This is called an Accumulated Income Payment (AIP) and is usually paid to the subscriber. If interest in the RESP is not used by the beneficiary through an EAP, accumulated interest can be paid out on its own. For example, a subscriber could request a withdrawal of contributions if they have no longer any benefits in their RESP. The contributions can be taken out of the RESP tax-free and paid to either the subscriber or the beneficiary. However, beneficiaries may not have much income during their studies, so it is possible that the beneficiary pays little to no tax when receiving an EAP.Ī withdrawal of contributions can be requested by the RESP subscriber. EAPs are considered income for the beneficiary and are taxed when taken from the RESP. interest accumulated on the money in the RESPīecause of these different sources of money in an RESP, there are different ways to withdraw.Įducational Assistance Payments (EAPs) include money from benefits and accumulated interest.benefits received, like the Canada Learning Bond (CLB), Canada Education Savings Grant (CESG), and/or provincial benefits.contributions from the subscriber and/or others.Money in a Registered Education Savings Plan (RESP) can come from many sources: If you don’t use the RESP for education.Track the grant amounts you use for education.Request money on behalf of the beneficiary How to use the RESP to pay for education.Pay for education using the Registered Education Savings Plan On this page Managing the RESP, taxes, and transfers Managing the RESP, taxes, and transfers.Open RESP and apply for benefits Open RESP and apply for benefits.How much money benefits could add to the RESP How much money benefits could add to the RESP.How the RESP and related benefits work together How the RESP and related benefits work together.Registered Education Savings Plans and related benefits
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