The countdown to the start of the new school year is upon us. If your children are like mine, they are approaching Labour Day with a mix of excitement and trepidation. Aren’t we all.

For university students, we must also contend with how to pay for their studies. Most are antiquated with the Registered Education Savings Plan which is described well in Tim Cestnick’s article but few are acquainted with the withdrawal strategies that can help you and your child save tax.

In a nutshell, if you child is likely to use up the entire account or if a sibling can use any funds that are left over, there is little planning to be done. You may just want to keep the taxable portion of the withdrawals (the so-called Education Assistance Payment or EAP) at or below the basic personal amount which is $13,229 for 2020. Any withdrawals in excess of this amount should come from the subscriber’s contributions to the account – which can be received by your child tax-free.

However, if you have been a diligent saver, or if your children’s education costs are lower than expected, and your child might not use up the entire RESP, it would be best to ensure that the EAP is exhausted by the time your child/ren complete their studies. This will ensure that any money that remains in the account can be refunded to you on a tax-free basis.

For more information on RESP withdrawal strategies, please feel free to contact me at


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