Accessing Net Contributions
As your student plans the next step after high school, you will begin to make decisions on when and how you would like to receive payments from your RESP. Once your student has proof of enrolment in a qualified post-secondary program, you can take that first step by requesting net contributions from your plan. How you do this depends on the type of plan you have: Family Group Plan; Flex First or Family Single Student Plan; Heritage Plans.
Family Group Plan
The Family Group Plan is meant to provide funding for four years of post-secondary studies, beginning in the year your plan matures – typically when your child turns 18. As that date approaches, you will receive information with your Statement of Account that explains the three options available to you. You will be asked to make your choice before July 31st of your year of maturity.
Before withdrawing funds from your Family Group Plan at maturity, you will decide which option best suits your student’s post-secondary education plans and send instructions by completing the maturity application form before the deadline:
- Option 1 – Withdraw Contributions: Choose Option 1 only if your student is attending four years of post-secondary education beginning the year your Family Group Plan matures.
- Option 2 – Delay Decision: Choose Option 2 if your student will not be attending a post-secondary program the year your Family Group Plan matures, but you expect them to complete four years of post-secondary education in the future. Delaying your decision will not impact your net contributions, grants or income in your plan.
- Option 3 – Transfer to Family Single Student Plan: Choose Option 3 if you want maximum flexibility for withdrawals or your student is unlikely to complete four years of post-secondary education. The key benefit of the Family Single Student Plan is that your net contributions and Education Assistance Payments remain intact and you will have more choice over the amount and timing of all your withdrawals.
You can choose to transfer your Family Group Plan to the Family Single Student Plan any time up until the year of maturity. If you Family Group Plan matures this year, you must decide before July 31st.
For more information about withdrawing funds from your Family Group Plan or Classic Plan at maturity, download our ”Your Family Group RESP At Maturity” Fact Sheet
If we don’t hear from you
To provide your student with greater opportunity to receive benefits from your Family Group Plan, we will automatically transfer your net contributions, grants, and accumulated grant income to a Family Single Student Plan if we have not heard from you within two years after maturity. There is no cost to you and you keep your RESP and any grants received within your Plan. Please note that accumulated income on contributions in a Family Group Plan are not transferred and you will not be able to transfer back to the Family Group Plan once the transfer is complete.
Flex First Plan or Family Single Student Plan
With an individual RESP, like the Flex First Plan or Family Single Student Plan, you have the flexibility to withdraw what your child needs, when it’s needed, or keep you plan intact for up to 35 years. It’s simple and easy to request a withdrawal of your contributions .
Loyalty Bonus for Flex First: When you request a refund of your net contributions, you will also choose how much of the loyalty bonus will be returned to you or your student.
With the Heritage Plans, you will choose between the Self-Determined Option or Scholarship Option within 180 days of the maturity date, but no later than the maturity date. The Self-Determined Option can be a good choice if your student is pursuing a program of study that is less than 2 years. The Scholarship Option provides three payments options and is typically for students who plan to attend a two to four-year post-secondary program.
For more information about withdrawing funds from your Heritage Plans at maturity, click here.
Proof of Enrolment
The government of Canada wants to ensure that students enrolled in an RESP are using their funds towards the cost of post-secondary studies. According to the Income Tax Act, proof of enrolment in a qualifying program is required to maintain the government grants in your plan. We require verification of enrollment when you are making a post-secondary education (PSE) withdrawal from your RESP which you can easily download from your school’s website or obtain from your school’s Registrar’s office. If one if not available, you can complete the Verification of Enrollment section on the maturity application form and affix your Registrar’s seal/stamp on it prior to submission.