Understanding the Option to Receive an Accumulated Income Payment

An Accumulated Income Payment (AIP) is a withdrawal of grant income and/or plan income earned within your RESP. Canadian residents have the option to receive this income from their plan or transferring the income to a Registered Retirement Savings Plan.*
With an RESP from Knowledge First Financial, customers have three options once their plan is matured and there are funds remaining in the account.

Option 1: Withdraw the Income

It is important to know that AIPs are taxable and must be included on your income tax return. An AIP is also subject to a withholding tax.

When completing your income tax return in the year of the AIP payment, the Additional Tax on Accumulated Income Payments from RESPs (T1172) must be submitted. This form is available on the government website

Option 2: Transfer the Income to an RRSP

You can reduce the amount of tax payable on your AIP by contributing it directly to your RRSP, provided you have the appropriate RRSP contribution room. To request an AIP, please complete the following forms:

Option 3: Request a Grant Only Education Assistance Payment

Knowledge First Financial is committed to supporting post-secondary education in Canada and ensuring you get the most of your education savings. If there is grant principal in your matured RESP and your student completed a post-secondary program within the last six months, or plans to attend in the near future, please call Customer Service to discuss your options.

You have until the termination date of your plan to request an AIP.

Once we have received the necessary forms, we will assess your request and confirm what payments we are able to complete. If you have any questions regarding the completion of these forms, please contact our Customer Service team at 1 800 363-7377 between the hours of 8 am and 8 pm ET, Monday to Friday.



Knowledge First Financial
Attn: AIP Processing Group
50 Burnhamthorpe Road West, Suite 1000
Mississauga, Ontario L5B 4A5 

In order for your request to be processed, the Request for Accumulated Income Payment Form must be signed by all subscribers of the plan.

 *Subject to Canada Revenue Agency (CRA) guidelines and the Income Tax Act (ITA).



Contact Us Downloads Recognized Institutions Need Acrobat Reader?