Withdrawal Rules + FAQs
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.
Which post-secondary 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 a recognized institutions must be:
- Full-time or part-time
- Minimum three consecutive weeks in duration
- Minimum 10 hours of instruction per week
When can I withdraw funds from my RESP?
Educational Assistance Payments from your RESP can be withdrawn once the student is enrolled in an eligible program. Simply provide a 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?
In part, 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 prior to 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 studies in Canada | At least 3 weeks long with 10 hours of course work per week | First 13 consecutive weeks: $5,000 maximum
After first 13 consecutive weeks: $25,268 maximum* |
| Part-time studies in Canada | At least 3 weeks long with 12 hours of course work per month | Each 13-week semester: $2,500 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: $5,000 maximum
After first 13 consecutive weeks: $25,268 maximum* |
*Based on 2022 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.
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 a period of time?
Outside the restrictions described above, with your Knowledge First RESP, you can control the amount and timing of withdrawals.
What happens if my child decides not to attend post-secondary school?
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 plan open, in case your child has a change of heart. Your plan can stay open for a period of 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 a Non-educational Contribution Payments and Accumulated Income Payment. 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.
