Flexibility

Depending on the type of plan chosen, someone other than a parent, such as a grandparent of friend, may open and contribute to an RESP on behalf of the beneficiary.¹ There are two types of RESPs:

• Individual and Family Plans

Keep in mind that:

• You can withdraw your principal at any time, tax free²
• If your child does not pursue post-secondary education, you may be allowed to transfer up to $50,000 of earnings from your RESP to your RSP or a Spousal RSP tax-free, assuming available contribution room

^1. An RESP is opened and contributions are made by a -subscriber- on behalf of a beneficiary. Two people may be subscribers to an RESP if they are spouses or common-law partners under the Income Tax Act. A corporation, trust, church or charity may not be a subscriber.

^2. If the beneficiary is not enrolled in a post-secondary educational institution, withdrawals of contributions require repayment of CESG and may affect the beneficiary's ability to qualify for CESG for the remainder of the year.