How do I know if my Heritage RESP was transferred to a Knowledge First Financial Family Single Student Plan?
All Heritage Group and SDO plans were transferred to Family Single Student Plans on March 1, 2022. As part of the transfer, you should have received a plan transfer package in the mail in early May, outlining all details about your new plan.
If you have any further questions about your new Family Single Student Plan, we’re always here to help. Please feel free to give us a call Monday-to-Friday at 1-800-363-7377 or send us an email at email@example.com
Do I still need to create a new online account Knowledge First Financial’s website, even if I used to have an account with Heritage Education Funds?
Do I have to create a secure online account for each child or each plan I have with Knowledge First Financial?
No, you don’t! Once you create your secure online account and register with one of your children’s date of births, all other linked plans will automatically populate and appear in your account.
Does it matter which child’s birthdate I use to create my secure online account if I have multiple children with Knowledge First Financial RESP plans?
No, it doesn’t. So long as your child has a plan with Knowledge First Financial, you can use their birthdate to create a secure online account. Once created, all other linked plans will automatically populate in your account.
We recommend creating your secure online account as soon as possible! In doing so, you’ll gain access to many tools and resources that’ll allow you to monitor and make changes to your plan as well as start the withdrawal process, among other things.
If I previously had a Heritage Education Funds online account, will my information and banking details be transferred over to Knowledge First Financial once I create my new account?
Yes, it will. Once you create and register your new Knowledge First secure online account, all plan information and your most recent subscriber banking information will automatically populate in your account. Once this has occurred, we encourage you to confirm its accuracy. If needed, you can easily add a new bank account through your secure account as well.
Please note that your student’s banking information will not be transferred over and should be re-entered if needed.
What is the difference between an Educational Assistance Payment (“EAP”) and Accumulated Income Payment (“AIP”)?
There are two main types of RESP withdrawals available to you – an Educational Assistance Payment, which should be used if your child is currently in, or planning to get into a post-secondary education program, and an Accumulated Income Payment if your child has finished or will not be going to school.
An EAP is any withdrawal from an RESP that helps finance the cost of your child’s post-secondary education. It is payable to your student. An EAP may consist of funds derived from the Canada Education Savings Grant, the Canada Learning Bond, amounts paid under a provincial education savings program and the earnings on any money saved in the RESP. It is taxed in the hands of the student and should be included as income on their income and tax benefit return for the year.
An AIP allows you to withdraw income earned in your RESP with the intention of not putting it towards the cost of your child’s post-secondary education. An AIP is payable to you, the subscriber, and should be avoided if your child is still interested in going to post-secondary school. An AIP comes with considerable taxation and we recommend giving us a call to go over your options as there may be less punitive alternatives that can help you recover more of your savings, like transferring your income into an RRSP.
We’re available anytime Monday to Friday by phone at 1-800-363-7377 or by email at firstname.lastname@example.org.
What types of post-secondary programs and courses can I put my new Family Single Student Plan towards?
With the Family Single Student Plan, you have the ability to use your funds for a wide variety of post-secondary programs! Your beneficiary can study at any post-secondary institution that qualifies for an EAP under the Income Tax Act (Canada). This can include:
Canadian universities, colleges, CÉGEPs, other designated post-secondary educational institutions and some occupational training institutions universities.
Colleges and other educational institutions outside Canada.
In terms of the post-secondary program, they must:
Be at least 3 consecutive weeks in length and:
Require at least 10 hours per week of instruction time, or
Require at least 12 hours per month of instruction time, provided student is over 16-years old (a “specified program”)
Outside of Canada
Be at least 13 consecutive weeks in length at a university, college or other educational institution, or
Be at least 3 consecutive weeks in length of fulltime studies at a university, and be at an institution and program that would qualify for an EAP under the Income Tax Act (Canada).
What, if any, are the fees associated with the new Family Single Student Plan?
The Family Single Student and Heritage Group RESP Plan share a very similar fee structure. Common fees that customers can expect to pay under the Family Single Student Plan include management fees that includes administration, custodial and portfolio management and IRC fees.
Can I apply for an Educational Assistance Payment (“EAP”) through my secure online account with Knowledge First?
Yes, you can! To apply for a withdrawal, all you have to do is log into your Knowledge First secure online account, and under “Apply for a Withdrawal,” select “Educational Assistance Payment.” From there, all you have to do is simply follow the instructions and select the amount you’d like to withdraw. Once your application is processed by us, you can expect your funds to be transferred to your desired bank account within 2-to-3 business days.
Once your child is registered in a post-secondary program, you can start the withdrawal process whenever you need! To begin, all you’ll need is a Verification of Enrollment Form from your post-secondary institution. After that, all you’ll have to do is request your funds through your Knowledge First Financial secure online account.
Do I need a Verification of Enrollment Form each time I want to make a withdrawal?
Yes, you do. By confirming that your child is currently enrolled in a post-secondary program, you gain complete access to your education savings, including your government grants and the income earned on them.
Do I need to declare my intent to withdraw an Educational Assistance Payment before making a withdrawal?
No, you don’t. With the Family Single Student Plan, you can withdraw funds whenever and however you’d like, provided that your child is enrolled in an eligible post-secondary program. Simply request a withdrawal and your funds will be transferred to your desired bank account within 2-to-3 business days of being processed.
What is the best way to withdraw my education savings?
To ensure that you maximize the value of your education savings, we highly recommend giving us a call to help you create a personalized tax-optimized withdrawal strategy. We’re available anytime Monday to Friday by phone at 1-800-363-7377 or by email at email@example.com.
Is there a withdrawal deadline for my new Family Single Student Plan?
No, not at all! So long as your child is currently enrolled in a post-secondary program, and you have a Verification of Enrollment Form, you’re able to withdraw funds whenever you’d like throughout the plan’s 35-year lifetime.
How long does it take for my funds to be transferred once I’ve applied for a withdrawal?
Once you’ve applied for a withdrawal, you can expect to receive your funds within 2-to-3 business days. If your request requires a review, this may take 5-to-7 business days instead.
What happens if I’ve already made withdrawals from my Heritage Group Plan before it was transferred to a Family Single Student Plan?
Absolutely nothing! By transferring to a Family Single Student Plan, you’re able to withdraw your remaining funds at any time and any way you’d like, subject only to Canadian income tax rules, to help fund your child’s post-secondary journey.
If my child chooses not to go to school, can I transfer the RESP funds to another student?
Yes, you can! To ensure this process is done as smoothly as possible, we ask that you contact our Customer Care Team to go over your options and help you transfer the funds. They are available Monday to Friday by phone at 1-800-363-7377 or by email at firstname.lastname@example.org.
Before making any withdrawals, we highly recommend that you contact us to set up a tax-optimized withdrawal strategy that’s tailored to your needs, allowing your education savings to go further. We can be reached Monday to Friday by phone at 1-800-363-7377 or by email at email@example.com.
If I want to transfer my education savings to an RRSP, do I need contribution room?
Yes, you do. By requesting an AIP, you can transfer the income held in an RESP to a RRSP without triggering any penalties provided that you have the RRSP contribution room to do so.
How do I learn more about the types of withdrawals I can make?
Our Customer Care team would be happy to walk you through the different types of withdrawals, and help you figure out which works best for you. They can be reached Monday to Friday by phone at 1-800-363-7377 or by email at firstname.lastname@example.org.
Do all withdrawals I make go directly to my student?
Not necessarily. Your contributions are yours and will be paid to you unless you direct us to pay it to your student. Income earned in your RESP and any government grants are payable to your student. It’s important to note that if a student authorizes the EAP amount to be paid to you, the subscriber, the student will still be the one that is taxed. If your student finished or is not pursuing a post-secondary education, you can request the income in your plan to be paid to you or rolled over into your RRSP, provided there is contribution room.
What happens to the sales charge refund that I was eligible for with my Heritage Group Plan now that I’ve been transferred to a Family Single Student Plan?
We’ve actually already allocated it to your plan! Sales charge refunds are always paid from pre-maturity attrition that accumulates in each Group Plan cohort. At the time of the plan transfer, plans that had not reached their maturity received their applicable share of this pre-maturity attrition as a proportionate asset transfer based on the number of units in their plans.
What happened to the group plan’s attrition income when we transferred over to a Family Single Student Plan?
All remaining pre- and post-maturity attrition income was distributed to Heritage Group Plan customers in the form of a proportionate asset transfer as part of the plan transfer. To learn more about how much you received, please be sure to consult your plan transfer package, which you should have received by mail in early May.