A registered education savings plan (RESP) is an effective vehicle for funding post-secondary education expenses, although the complex withdrawal rules can be confusing. Parents with children who are currently attending or who will be pursuing post-secondary education want to make sure tuition and living expenses are well funded through RESP withdrawals. Parents whose children have already completed their post-secondary education or who have decided not to pursue post-secondary education at all, want to wind down the RESP in the most tax-efficient way. In this article, we go back to basics and review the three types of withdrawals available from an RESP, along with offering some strategic considerations when making a withdrawal.
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