How to Withdraw Funds From Your RESP
A registered education savings plan (RESP) is a type of investment account designed to help you save for future educational expenses if your child decides to pursue post-secondary education. Like any investment account, you can withdraw your contributions from your child’s RESP account. But, there are RESP withdrawal rules you need to know.
Before you withdraw, exploring the various aspects of RESP withdrawal can help you make the right choice for you and your money. We’ve outlined your options below.
A Snapshot of your RESP account
At Embark, you can choose when and how much to withdraw from your RESP, for your child’s post-secondary education payments. These funds can be used toward a full-time program or part-time program at a recognized university or other educational institutions such as trade schools, colleges, and other programs. So, what funds make up your registered education savings plans (RESP)?
Most RESP subscribers contribute routinely over several years before their child enrolls in post-secondary school. So, if you’ve been watching your RESP savings grow over the years without paying close attention to the details, you’re not alone. But, when it comes to withdrawals, the contents of your RESP matter.
At the time of your child’s enrolment, your RESP savings will typically consist of:
1. RESP Contributions
RESP capital, which is the money you contributed over the years.
2. Canada Education Savings Grants (CESG)
Money from grants, such as the Quebec Education Savings Incentive, Canada Learning Bond, or the British Columbia Training & Education Savings Grant.
3. Investment income
Investment earnings your money has accumulated over the years.
While you might be tempted to look at the total amount in your RESP as “our savings,” each of these three parts is treated differently when it comes time to withdraw.
Your contributions vs. RESP income
Over the years, you will have made contributions to your RESP using your hard-earned money. This has been the fuel that drove growth in your RESP. Well done! As a reward, the government has contributed to your RESP through an Education Savings Grant (CESG).
In addition, both your RESP savings and government grants have generated gains through compound growth on both your contributions and government grants. This grant money + investment gains are together considered “RESP income”.
The reason this difference is important is that the way these funds are withdrawn (and the way they are taxed) varies between your contributions and RESP income.
Understand the withdrawal process
As mentioned above, the various contents of your RESP are treated differently when it comes to withdrawal. Let’s have a look at those differences.
1. Withdrawing your contributions
When your child enrolls in postsecondary school, your contributions can be withdrawn through a Post-Secondary Education Contribution Payment (PSE). These contributions will be withdrawn tax-free and you can choose whether you want the RESP funds to be released to you, or your child.
You also have the option to withdraw your contributions before your child enrolls in post-secondary school through a Non-Post-Secondary Education Payment (NPSE). Keep in mind that if you withdraw money for this purpose, doing so will result in the government reclaiming the Canada Education Savings Grant money they contributed to your RESP, and may result in the closure of your RESP.
See Withdrawal Rules + FAQs for more details.
2. Withdrawing RESP income (Education Assistance Payment)
Once a student is enrolled in an eligible post-secondary institution, grants + investment gains can be withdrawn through an Education Assistance Payment (EAP). This withdrawal will be considered taxable income for your student, so it is important to be smart in how you withdraw funds from your RESP to maximize tax savings.
Also, it’s important to note that only the beneficiary (the student) can receive an Education Assistance Payment (EAP), so be sure to support your student in understanding the process.
We also have lots of information to help your students understand EAPs in our Learning Centre.
3. Withdrawing income for non-educational purposes
If your RESP has leftover income that your child did not use for educational purposes, that money can be withdrawn through an Accumulated Income Payment (AIP) withdrawal. Keep in mind that if you aren’t using your RESP income for educational purposes, the government will not allow you to withdraw grant money (i.e. you can only withdraw income from investment gains).
Additionally, the investment income you take from your RESP withdrawals will be subject to marginal taxes and an additional 20%.
Learn more about AIPs in our RESP Basics section.
Discover strategies to withdraw smartly
As explained above, RESP income is taxable. You’ll be happy to know, however, that most students enjoy tax-free withdrawals when they withdraw strategically. So, unless you are one of the few people who enjoys paying taxes, check out our page dedicated to strategic withdrawals, to ensure you keep as much of your money as possible.
Learn how to request a withdrawal
Once enrolled in an eligible educational institution, the best way to request a withdrawal is online. It’s fast and easy and you can receive your payment in as little as 48 hours! Instructions on how to do that, as well as avenues for other types of RESP withdrawals, can be found below.
Educational Withdrawals
For Educational Contribution Payments, the EAP withdrawal process is as follows:
- Login to your secure online account.
- Select Withdrawal from the menu (and if prompted choose the type of withdrawal you are looking to make).
- Enter the required information
- Upload your student’s Verifications of Enrolment (from the school website or registrar’s office)
- Click submit.
Withdrawal rules and common questions
How can RESP funds be used?
RESP money can be used to pay for education costs once you’ve provided proof of enrolment in an eligible program. While there isn’t a hard and fast list of eligible expenses, typical uses include tuition, room and board, books, equipment, and transportation, among other things.
When can I withdraw funds from my RESP?
Education Assistance Payments from your RESP can be withdrawn once the student is enrolled in an eligible program. Simply provide proof of enrolment and submit a withdrawal request (see Withdrawing from your RESP for more details). The request can be submitted from the time the student enrols until six months after the program is completed.
Can I withdraw my funds early?
Yes you can withdraw from your RESP account early, but it is rarely a good idea. You can withdraw your contributions before a child enrols, but that will trigger a government clawback of grant money they contributed (after all, they rewarded you based on those contributions). You can also withdraw income from investment gains before enrolment, but that will require an Accumulated Income Payment, which carries a stiff tax penalty.
You cannot withdraw the grant portion of your RESP before enrolment, since that money was provided by the government for the sole purpose of funding your child’s education.
How much can I withdraw from my RESP?
The amount you can withdraw as Educational Assistance Payments will depend on whether the student is enrolled full-time or part-time. In each case, the “13 weeks of consecutive study” is an important milestone, as demonstrated in the chart below.
| Program Type | Description | EAP Withdrawal Limit |
| Full-time students in Canada | At least 3 weeks long with 10 hours of coursework per week | First 13 consecutive weeks: $8,000 maximum
After the first 13 consecutive weeks: $26,860 maximum* |
| Part-time students in Canada | At least 3 weeks long with 12 hours of coursework per month | Each 13-week semester: $4,000 maximum |
| Full-time studies outside of Canada | At least 3 weeks long at a university, or 13 weeks long at a college or other type of educational institution | First 13 consecutive weeks: $8,000 maximum
After 13 consecutive weeks: $26,860 maximum* |
*Based on 2023 data. Indexed annually.
There is no limit to how much you can withdraw as a Post-Secondary Educational Contribution Payment, but be mindful of how to withdraw the smart way, so you can optimize your RESP withdrawals. For more information on the difference between Educational Assistance Payments and Post-Secondary Educational Withdrawal, visit Withdrawing from your RESP.
Do I have to take it all out in one withdrawal, or can I have multiple withdrawals over some time?
Outside the restrictions described above, with your Embark RESP, you can control the amount and timing of withdrawals based on your child’s program and financial needs, giving you more flexibility on when you use your money.
Which post-secondary education institutions and programs are eligible?
The list of institutions and programs that qualify for RESP Educational Assistance Payments is extensive, which gives you lots of options!
The list includes universities, colleges, technical institutes, religious colleges, and private post-secondary institutions registered under the Private Vocational Schools Act. Check out the Canadian government’s list of designated educational institutions or the list of certified institutions, and feel free to contact us if the name of the post-secondary institution is not included on this list.
We’d be happy to further investigate for you. Qualified programs at recognized institutions must be:
- Full-time or part-time
- Minimum three consecutive weeks in duration
- Minimum 10 hours of instruction per week
What happens if my child decides not to attend post-secondary program?
Things can change, we know. So, if your child chooses a different path besides post-secondary education, you have options. The first suggestion is to keep the RESP open, in case your child has a change of heart. Your plan can stay open for 35 years after opening!
Another option is to change the beneficiary of the RESP to a sibling or another child. You may also choose to withdraw your funds as Non-educational Contribution Payments and Accumulated Income Payments. Further, you may want to consider moving your RESP withdrawals to your registered retirement savings plan (RRSP) if you have RRSP contribution room for the year. Doing so can lower your income tax and provide more of a tax deduction for you for the current year.
For more details on those payment types, check out Withdrawing from your RESP.
How long can my RESP remain open?
Your RESP can remain open for 35 years after opening. If you are approaching that time, simply reach out to us and we will help you withdraw the funds and close the RESP.
What can my RESP withdrawals be used for?
RESP withdrawals can be used toward numerous expenses the beneficiary may need to pay for including:
- Tuition costs for their post-secondary program.
- Textbooks and supplies.
- Living expenses including accommodations, meals, and other bills.
- Transportation fees.
- Electronics including cell phone and laptop.
- Expenses accumulated when studying outside of Canada.
How much can I contribute to an RESP?
The lifetime RESP contribution room is $50,000. There are no annual contribution maximums. Subscribers will receive a supplement for their contributions by 20%, up to a limit of $500 from government grants each year. Note that over-contributions to this account will be subject to a 1% tax penalty per month of the over-contribution until the funds are withdrawn.
Embark is Canada’s education savings and planning company. The organization aims to help families and students along their post-secondary journeys, giving them innovative tools and advice to take hold of their bright futures and succeed.
