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Canadian Desi

  Canada Immigration Forum > About Canada > Financial Planning > WHAT IS RESP - REGISTERED EDUCATION SAVINGS PLAN
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Senior Desi
Member since: Feb 06

Posts: 464

Good to know about advance withdrawal of additional $14K contribution.

I don't see anything wrong to contribute $14 at early stage if you commit to not withdraw before child goes to university. It will grow tax free.

Do you think most parent aware of it and contributes $14K to grow tax free? (May be most of us are not exceeding the TFSA limit. So, this may not make sense for them)

Originally posted by myjughead

Hi there,

Once $36k are contributed in RESP it will not attract any grants. So yes, you can deposit balance of maximum allowed limit $14K to grow tax free.

Further, when you withdraw, as per CRA rules, your contributions will come back to you tax free but the grants equivalent to $14K contribution will be returned to CRA, because CRA does not recognise that this $14K was additional contribution above $36K. For them, if the money is withdrawn from RESP before kid goes to university, equivalent grant provided to date must also be returned.


Success is Never Ending and Failure is Never Final.

Last edited by: Monica.admin on 31-01-17 16:08:04
Post ID: 233849 31-01-17 13:17:57
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Junior Desi
Member since: Apr 11

Posts: 8
Location: Ontario, Canada

You are right meitsme, not many people have $14K to contribute in one shot for RESP and given the other investing and saving vehicles (RRSP and TFSA),not much is left over in most cases.


Last edited by: Monica.admin on 31-01-17 14:19:52
Post ID: 233850 31-01-17 13:26:55
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