Cashing In Your RESP
Once a child is enrolled in a qualifying post-secondary education program, they will begin getting Educational Assistance Payments (EAPs) from their RESP.
RESP Qualifying Educational Programs
A RESP qualifying educational program is a course of study that lasts at least three weeks in a row, with at least 10 hours of instruction or work each week. A program at a foreign educational institution must last at least 13 weeks. Programs include apprenticeships, and programs offered by a trade school, CEGEP, college or university. Other institutions certified by the Minister of Human Resources and Social Development Canada may also qualify as RESP elligible.
Contact the Canada Revenue Agency at 1-800-959-8281 to see which programs qualify.
When a child chooses not to pursue post-secondary education
Should a child not continue his or her education after high school there are still some options:
- Wait for a bit, he or she may still decide to continue studying
- Use the money for a sibling who will go on to a post-secondary education
- Transfer the money into your Registered Retirement Savings Plan (RRSP)
- Withdraw the money
Check with your RESP provider to find out about all your choices should this happen.