Chapter 4. Registered Education Savings Plan provider user guide – Registered Education Savings Plans

From: Employment and Social Development Canada

Disclaimer: RESP promoters

The information contained on this page is technical in nature. It is intended for Registered Education Savings Plan (RESP) and Canada Education Savings Program promoters. For general information, visit the RESP section.

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A PDF version of the Registered Education Savings Plan provider user guide is available on the index page.

List of acronyms

AIP
Accumulated income payment
BCTESG
British Columbia Training and Education Savings Grant
CESG
Canada Education Savings Grant
CESP
Canada Education Savings Program
CLB
Canada Learning Bond
CRA
Canada Revenue Agency
EAP
Educational assistance payment
ESP
Education savings plan
ESDC
Employment and Social Development Canada
ITA
Income Tax Act
PCG
Primary caregiver
PSE
Post‑secondary education
RDSP
Registered Disability Savings Plan
RESP
Registered Education Savings Plan
RRSP
Registered Retirement Savings Plan
SAGES
Saskatchewan Advantage Grant for Education Savings
SIN
Social Insurance Number
SIR
Social Insurance Registry
QESI
Quebec Education Savings Incentive

Introduction

A Registered Education Savings Plan (RESP) is an education savings plan (ESP) that has been registered with the Canada Revenue Agency (CRA). It is a savings vehicle intended to encourage saving for post‑secondary education. More precisely, it is an arrangement between the RESP promoter and subscriber(s).

The subscriber can be anyone depending on the type of RESP opened. For more information, refer to section 4.4. Types of RESPs for an in‑depth explanation of all RESP plan types.

The subscriber may make contributions to a RESP. The RESP promoter agrees to use the accumulated funds to make educational assistance payments (EAPs). The promoter makes those EAPs to an eligible beneficiary designated by the subscriber. RESP earnings are not taxable until they are withdrawn to offset the costs of the beneficiary’s post‑secondary education.

An RESP must be opened to receive payments of education savings incentives in respect of eligible beneficiaries.

For more information, refer to Appendix C for a list of acronyms and terms used in this guide.

4.1. RESPs – An overview

RESP promoters offer education savings plans (ESPs) designed to help their clients save for a child’s post‑secondary education (PSE).

An ESP contract can be registered if it meets certain terms and conditions stipulated in section 146.1 of the Income Tax Act (ITA). The ESP then becomes a RESP. Earnings in the RESP are not taxable until they are withdrawn.

Once an ESP has been registered, it is subject to rules that govern contributions, withdrawals, earnings, and the transfer of monies. Compliance with these rules ensures the registered status of the RESP.

The RESP contract will include terms and conditions that the subscriber must agree to, which vary depending on the type of plan. For example:

  • the need for making contributions to the RESP over the term of the contract, or
  • whether contributions will be intermittent or on a regular basis (at the discretion of the subscriber)

The RESP promoter invests the funds contributed by the subscriber. When the beneficiary attends a post‑secondary educational institution, they can use the earnings and education savings incentives paid to the plan to make EAPs. Those EAPs will help to offset related education expenses. Terms and conditions prescribe when and how these earnings are paid. For more information, refer to Chapter 10. Post‑secondary education and educational assistance payments.

When a beneficiary is eligible for an EAP, the subscriber can choose to withdraw some or all of the contributions that they have invested. While there is no requirement to do so, they could also use these PSE contribution withdrawals to help pay for the beneficiary’s PSE expenses.

4.1.1. RESPs may qualify for education savings incentives

To encourage Canadians to plan and save for their children’s post‑secondary education, the Government of Canada offers 2 federal education savings incentives:

  • Canada Education Savings Grant (CESG) which may include:
    • Basic CESG, and
    • Additional CESG
  • Canada Learning Bond (CLB)

An RESP may also include provincial education savings incentives from one of the 3 following designated provincial programs:

  • Saskatchewan Advantage Grant for Education Savings (SAGES): Employment and Social Development Canada (ESDC) administers this education savings incentive through an agreement with the province of Saskatchewan
  • British Columbia Training and Education Savings Grant (BCTESG): ESDC administers this education savings incentive through an agreement with the province of British Columbia
  • Quebec Education Savings Incentive (QESI) is a provincial education savings incentive established under Quebec legislation. ESDC does not administer this provincial incentive

Deposits of education savings incentives into an RESP are possible if the RESP satisfies certain eligibility criteria. They can enhance RESP earnings and be used as an EAP by an eligible beneficiary.

When an ESP is registered and the subscriber makes contributions to that RESP, the contributions may qualify for the CESG. The beneficiary may also qualify for the CLB and/or provincial incentives. However, the CLB, and the BCTESG do not require contributions to an RESP. More information about each of these incentives is provided in these chapters:

4.2. Establishing the RESP

There are 4 parties involved in the process of opening and registering an ESP. They are:

  • the subscriber
  • the RESP promoter
  • ESDC
  • the CRA

4.2.1. Opening the ESP

A subscriber enters into an ESP contract with an RESP promoter of their choice. The RESP promoter then arranges to have the plan registered with the CRA.

Typically, the subscriber is the child’s parent or parents. It can also be a beneficiary, a grandparent, another family member, or someone not related to the beneficiary. One person can open the ESP or they can open it jointly with their spouses or common‑law partners. Child care agencies can also open ESP.

There are 3 different types of ESPs:

  • family plans
  • individual (non‑family) plans
  • group plans

The subscriber(s) must choose the RESP promoter that they would like to deal with and decide what type of plan that they will open. For more information, refer to section 4.4. Types of RESPs, later in this chapter.

4.2.2. Registering the ESP

An ESP contract must meet certain conditions in order for it to be registered with the CRA.

An RESP promoter must submit certain information to ESDC when applying for the registration of an ESP on behalf of the subscriber, as follows:

  • an RESP promoter’s application form must:
    • be filled out with accurate and valid information
    • be done according to procedures established by the CRA, and
    • then submitted to the RESP promoter’s head office for processing
  • the application form must also include a notice to the subscriber(s) that an over‑contribution to the plan may result in a penalty tax

Any new contract submitted to the Canada Education Savings Program (CESP) system will be treated as a request to register the plan with the CRA.

The CRA will register only those contracts that meet all registration requirements.

4.2.3. Social Insurance Numbers (SINs)

The SIN is a 9 digit number used in the administration of various Canadian government programs. The Social Insurance Registry (SIR), ESDC, administers the SIN Program.

When opening an ESP, a SIN is required for:

  • the ESP subscriber(s), and
  • the ESP beneficiary(s)

When requesting the Additional CESG, a SIN is required for:

  • the beneficiary’s individual primary caregiver (PCG), or
  • the individual PCG’s cohabiting spouse or common‑law partner

When requesting the CLB:

  • if the beneficiary is under 18 years of age (CESP application form ESDC SDE 0093):
    • a SIN is required for the beneficiary’s individual primary caregiver, or
    • that of the individual PCG’s cohabitating spouse of common‑law partner
  • if the beneficiary is between 18 and 20 years of age (CESP application form ESDC SDE 0107):
    • no SIN other than the one(s) needed to open the RESP need to be collected

The SINs are used to:

  • request the CESG and the CLB
  • ensure that accurate RESP records are maintained for each beneficiary
  • track contributions to RESP(s) for each beneficiary
  • verify each beneficiary’s eligibility for education savings incentives administered by ESDC
  • track incentive payments administered by ESDC to RESP(s) in respect of each beneficiary
  • track repayment of incentives administered by ESDC (for example, when making a withdrawal from a RESP)
  • track EAPs made in respect of each beneficiary, and
  • ensure that tax slips are issued to the right person and correctly

A family member or friend can open an RESP and name a child as the RESP beneficiary. To do so, they will need to obtain the SIN of the child from the child’s custodial parent or legal guardian.

The child’s custodial parent(s) or legal guardians can apply for a SIN for their child. There are no fees associated with a SIN application. Visit the Service Canada Web site for the SIN application form and related information.

To obtain a SIN, someone can apply in person at a Service Canada office or by mail. After successfully processing a request, Service Canada provides the new SIN information in a confirmation letter. Service Canada no longer issues SIN cards.

4.2.3.1. Verifying the beneficiary’s SIN

The SIN is a key piece of information that the CESP system uses to verify a beneficiary’s eligibility for the applicable education savings incentive(s). When an RESP is entered into, the RESP promoter submits the beneficiary’s SIN information electronically to the CESP system. Then, in partnership with the SIR, it validates the beneficiary’s information.

If the beneficiary information submitted by the RESP promoter does not match the information contained in the SIR, the submission will result in an error. This will lead to the CESP system rejecting the information. The CESP system will send a report to the RESP promoter, identifying the field(s) in error. The RESP promoter will have to verify the information provided by the subscriber and resubmit the data to the CESP system.

Until the beneficiary information is successfully processed by the CESP system, any financial information submitted will cause errors. This includes requests for payments of the CESG, the CLB, the SAGES and the BCTESG. The beneficiary information must be successfully processed and established before any financial transactions related to that beneficiary can be processed. For more information, refer to Chapter 3. The Canada Education Savings Program system and Interface Transaction Standards.

4.3. Contributions and their limits

Contributions are deposits made to an RESP by a subscriber in respect of a beneficiary and remain the property of the subscriber. While the subscriber cannot deduct contributions made to an RESP from their taxable income, earnings on contributions are tax sheltered.

Tax on earnings, earnings on contributions made to an RESP are not taxable until the earnings are used as part of an EAP in respect of the beneficiary or until they are paid to the subscriber in an accumulated income payment (AIP) if the beneficiary does not qualify for an EAP.

When beneficiaries use an EAP to help finance their post‑secondary education, they will be responsible for paying any taxes on the EAP. Since students generally have limited income, the tax paid will usually be minimal.

If the beneficiary does not attend post‑secondary education and the earnings are paid to the subscriber, the subscriber will be responsible for paying any required taxes.

For more information, refer to Chapter 11. Options for assets remaining in the Registered Education Savings Plan.

There is no limit to the number of RESPs that can be opened in respect of a beneficiary. However, the following are the limits on the amount that can be contributed across all existing RESPs for one beneficiary.

Table 1: Contribution limits
Period Annual contribution limit per beneficiary Lifetime contribution limit per beneficiary
1998 to 2006 $4,000 $42,000
Since 2007 No limit $50,000

A beneficiary’s contribution limit is based on the total of all contributions, by all subscribers into all RESPs. The annual and lifetime limits cannot be circumvented by entering into multiple plans.

Over‑contributions to an RESP are subject to a penalty tax. For more information, refer to section 4.5. Over‑contributions.

4.3.1. What are not considered to be contributions

Earnings on the contributions are not considered to be contributions when calculating the annual and lifetime contribution limits.

The $25.00 fee paid to an RESP promoter is not considered to be a contribution. This only applies to a first‑time request for the payment of the CLB for a beneficiary. This payment is to assist in paying for administrative costs associated with the establishment of these plans.

Federal education savings incentives are not considered to be RESP contributions when calculating contribution limits.

Provincial education savings incentives are not considered to be RESP contributions when calculating contribution limits. These payments are treated in the same way as federal incentives and do not attract federal incentives themselves.

Assisted and unassisted contributions, contributions to an RESP are considered to be either “assisted” or “unassisted”:

  • an assisted contribution is a contribution made to an RESP that has attracted the CESG
  • an unassisted contribution is a contribution made to an RESP that has not attracted the CESG

4.3.1.1. Insurance provisions

Some subscribers may decide to enter into an insurance contract as part of their RESP. This would ensure that contributions to the RESP will continue in the event of certain circumstances (such as the death of the subscriber). This insurance contract will include the payment of insurance premiums. These premiums are not considered to be contributions to the RESP.

Insurance proceeds, payments made to an RESP in accordance with the terms of an insurance contract are referred to as “insurance proceeds” and are not considered to be contributions.

Depending on the plan’s structure, administration and trustee fees may or may not be considered to be contributions. If there are charges for administration or trustee fees outside the plan, they are not considered contributions. If they are charged within the plan, they can be considered part of the contributions and are therefore subject to contribution limits.

Note: Fees are not to be charged to the education savings incentive portions of a RESP.

For more information, contact the CRA – Registered Plans Directorate at 1‑800‑267‑3100.

4.4. Types of RESPs

There are 3 types of RESPs:

  • individual (non‑family) plans
  • family plans, and
  • group plans

The following is a description of each of these plan types.

4.4.1. Individual (non‑family) plans

The features of an individual (non‑family) plan are as follows:

  • there is a single subscriber (includes child care agencies) or joint subscribers that have a spousal or common‑law relationship
  • there is only one beneficiary at any given time
  • the beneficiary does not need to be related to the subscriber
  • there is no restriction on the age of the beneficiary – it can be a child or an adult
  • there is no restriction on who can be named as the beneficiary. A subscriber could be the beneficiary of their own plan

The subscriber is responsible for presenting the beneficiary’s information to the RESP promoter.

4.4.1.1. Naming a replacement beneficiary in an individual plan

A subscriber can replace an existing beneficiary with a new beneficiary if their contract allows for it. When this happens, the original beneficiary’s contribution history could be attributed to the replacement. This could affect the annual and lifetime contribution limits for the new beneficiary. Furthermore, this could result in a penalty tax for all subscribers of that beneficiary.

There will not be any tax consequences to the replacement beneficiary if one of the following conditions is met:

  • the replacement beneficiary is under 21 and is a sibling of the original beneficiary, or
  • both the original and replacement beneficiaries are under 21 and are related by blood or adoption to the original subscriber of the RESP

The subscriber will need to present the RESP promoter with all of the necessary information relating to the replacement beneficiary. The RESP promoter must then submit that information to the CESP system.

For more information, refer to section 4.3. Contributions and their limits and section 4.5. Over‑contributions.

4.4.1.2. Making contributions to an individual plan

A subscriber can make contributions to an individual (non‑family) plan as long as contribution limits for the beneficiary have not been exceeded. However, any transfer of monies from one RESP to another could affect the contribution limits. For more information on transfers, refer to section 4.7. Transfers between RESPs and Chapter 9. Registered Education Savings Plan transfers and the education savings incentives.

Contributions to an individual (non‑family) plan must stop at either:

  • 31 years after the end of the year the RESP was opened (35 years in the case of a specified plan), or
  • 31 years after the end of the year of the “earliest effective date that applies” if a transfer has taken place

Earliest effective date when a transfer has taken place, when a transfer is made between RESPs, the earliest effective date of the 2 plans must be used to determine the date when plan contributions must stop in the receiving plan. For more information, refer to Chapter 9. Registered Education Savings Plan transfers and the education savings incentives.

4.4.2. Family plans

The features of a family plan are as follows:

  • there is a single subscriber or joint subscribers that have a spousal or common‑law relationship
  • there can be one or more beneficiaries at any given time
  • the beneficiaries must be related to the original subscriber of the RESP, either by blood or by adoption
  • an individual can become a beneficiary of a family RESP only if:
    • that individual has not yet turned 21, or
    • if the individual was, just before joining the family RESP, a beneficiary under another family RESP
  • contributions must be made in the name of a specific beneficiary
  • annual and lifetime RESP contribution limits apply to each beneficiary. Contributions made to any RESP in respect of a beneficiary count toward that beneficiary’s annual and lifetime contribution limits

Family member – relationship, each beneficiary of a family plan must be related by blood or adoption to each living subscriber under the plan or be related to a deceased original subscriber. Under the ITA, a “blood relationship” is that of a parent and child (or grandchild or great grandchild) or that of a brother or sister. The subscriber’s niece, nephew, aunt, uncle and cousin do not meet the definition of “blood relative”. They, therefore, do not qualify as a beneficiary under a family plan. An individual is not considered to be a “blood relative” of himself/herself.

An adopted child is related by adoption to his parents and grandparents. Stepchildren are related to their stepparents by virtue of being the children of their parent’s spouse or common‑law partner. This is referred to as “adoption in fact”.

Only plans where all beneficiaries are siblings can receive payments of the following incentives:

  • Additional CESG
  • CLB
  • SAGES
  • BCTESG

For more information, refer to the applicable incentive chapters in:

4.4.2.1. Adding a beneficiary to a family plan

If the terms of a subscriber’s contract allow for it, the subscriber can add beneficiaries to their plan at any time. However, the additional beneficiaries must still be related to the original subscriber of the RESP, either by blood or by adoption.

Furthermore, any additional beneficiaries must be siblings of the existing beneficiaries if the following incentives have been paid into the RESP:

  • the Additional CESG
  • the CLB, or
  • the BCTESG

If not, the promoter will need to repay all amounts of:

  • the Basic CESG
  • the Additional CESG
  • the CLB, and
  • the BCTESG

The SAGES can only be paid into a sibling‑only plan. However, the subscriber can add a cousin to the plan without having to repay the SAGES already in the RESP.

The eligibility criteria for adding a new beneficiary are as follows:

  • additional beneficiaries must be related to the original subscriber of the RESP, either by blood or adoption and must be:
    • under 21 at the time they are added, or
    • must have been beneficiaries under another family RESP immediately before being added
  • the subscriber must give the additional beneficiary’s SIN to the RESP promoter

4.4.2.2. Naming a replacement beneficiary in a family plan

A subscriber can replace an existing beneficiary with a new beneficiary if their contract allows for it. When this happens, the original beneficiary’s contribution history could be attributed to the replacement. This could affect the annual and lifetime contribution limits for the new beneficiary. Furthermore, it could result in a penalty tax for all subscribers of that beneficiary.

There will not be any tax consequences to the replacement beneficiary if one of the following conditions is met:

  • the replacement beneficiary is under 21 years of age and is a sibling of the original beneficiary, or
  • the original and replacement beneficiaries are under 21 years of age. They also need to be related by blood or adoption to an original subscriber of the RESP

Note: The replacement beneficiary must comply with the sibling‑only requirement associated with the Additional CESG, the CLB and the BCTESG. Otherwise, these education savings incentives must be repaid. SAGES can only be paid into a sibling‑only plan. However, a subscriber can add a cousin to the plan without having to repay the SAGES already in the RESP. For more information, refer to:

The subscriber will need to present the RESP promoter with any necessary information relating to the replacement beneficiary. The RESP promoter must then submit that information to the CESP system.

For more information, refer to section 4.5. Over-contributions.

4.4.2.3. Making contributions to a family plan

A subscriber can make contributions to a family plan in respect of a beneficiary. They can do so as long as that beneficiary is under 31 and the beneficiary has not exceeded their contribution limit. In addition, any transfer of monies from one RESP to another can affect the beneficiary’s contribution limit. For more information on transfers, refer to section 4.6. Transfers between RESPs and Chapter 9. Registered Education Savings Plan transfers and the education savings incentives.

Contributions for an individual beneficiary must stop at the earliest of 3 applicable dates:

  • the date that the beneficiary turns 31, or
  • 31 years after the end of the year the RESP was opened, or
  • 31 years after the end of the year of the “earliest effective date that applies”, if a transfer has taken place (refer to the section 4.4.1.2. Making contributions to an individual planearliest effective date when a transfer has taken place)

Contributions to a family plan with 2 or more beneficiaries must be made in respect of a specific beneficiary in the plan.

4.4.3. Group plans

The features of a group plan are as follows:

  • each group plan is a collection of individual (non‑family) RESPs
  • group plans are generally referred to as “Scholarship Plan Dealers”
  • each group plan is a group trust
  • the administration of group plans is based on an age cohort concept. This means that they administer the RESP contracts for beneficiaries of the same age together
  • RESP contributions and education savings incentives are tracked per individual beneficiary but are pooled for investment purposes. Pooling is based on all beneficiaries having the same year of eligibility (example: they are in the same age cohort and are expected to attend post‑secondary education in the same years. This is usually set to be 3 or 4 years)
  • payments for post‑secondary education assistance are determined by the number of beneficiaries who are eligible to receive such payments in the year of eligibility
  • earnings associated with the CESG, the CLB, the SAGES and the BCTESG can only be shared among the beneficiaries of a particular RESP. As group plans are a collection of individual (non‑family) plans, these earnings cannot be shared among a group cohort

4.4.3.1. Making contributions in a group plan

The subscriber must enter into a contractual arrangement with the RESP promoter, specifying a particular savings program. The contract will include the frequency of contributions to be made, the amount of the contributions, and investment options.

The subscriber will then make deposits with the RESP promoter for the duration of the contract. The RESP promoter will credit the contributions to a deposit account in the subscriber’s name within the group trust. It will then credit any education savings incentives received by the beneficiary to a separate deposit account in the child’s name. That is also done within the group trust. Income earned on contributions can be shared within the group plan. Income earned on education savings incentives cannot be shared.

4.5. Over-contributions

Over-contributions are limits on the total amount of RESP contributions that subscribers can make in respect of a beneficiary, across all existing RESPs.

Table 2: Contribution limits
Period Annual contribution limit per beneficiary Lifetime contribution limit per beneficiary
1998 to 2006 $4,000 $42,000
Since 2007 No limit $50,000

An over-contribution occurs when the total of contributions made in respect of a single beneficiary exceeds that beneficiary’s limit. For more information, refer to section 4.3.1. What are not considered to be contributions.

RESP promoters are required to ensure that contributions do not exceed these annual and lifetime limits. For more information, refer to section 4.3. Contributions and their limits.

However, an over-contribution can occur when several subscribers contribute to different RESPs for the same beneficiary without coordinating their contributions. For more information about over-contributions and taxation, contact the CRA at 1‑800‑267‑3100.

The withdrawal of over-contributions will reduce the amount of over‑contributions subject to tax. However, such a withdrawal will not reduce the total contributions considered to have been made in respect of the beneficiary. This withdrawn amount of over‑contributions still counts toward the total of contributions made in their respect. It will be considered for determining their lifetime limit. Lifetime contribution room is not restored when contributions or over‑contributions are withdrawn.

Withdrawing contributions may impact the CESG and the SAGES paid into the RESP. For more information, refer to the applicable chapters following:

4.5.1. Over-contribution due to a transfer

An over-contribution situation can also occur when the subscriber transfers monies from one RESP to another. When making a transfer, the contribution history of the beneficiaries in the transferring plan could be attributed to the beneficiaries in the receiving plan. This could then result in over‑contributions. The contribution history will not be applied to receiving plan beneficiaries if one of the following conditions is met:

  • the transferring and receiving plans have a common beneficiary, or
  • a beneficiary in the receiving plan is a sibling of a beneficiary in the transferring plan and the receiving plan is a family plan, or
  • a beneficiary of the receiving plan is a sibling of a beneficiary in the transferring plan and the receiving plan is an individual plan and the beneficiary of the receiving plan was under 21 years of age when the receiving plan was entered into

Over-contributions exist in respect of a beneficiary. In the event that an over‑contribution arises from a transfer, each subscriber who contributed to any plan in respect of the beneficiary in question will be affected. Each of them will be responsible for penalty taxes on the over‑contributions.

For more information about over‑contributions and taxation, contact the CRA – Registered Plans Directorate at 1‑800‑267‑3100.

4.5.1.1. Determining if the contribution history of the transferring plan applies to the receiving plan

Step 1: Subscriber requests RESP Transfer. Is there a common beneficiary in both plans?

  • if the answer is “Yes”:
    • contribution history of the transferring plan will not be applied to the receiving plan and the transfer will not have tax implications
  • if the answer is “No”:
    • go to step 2

Step 2: Does the receiving plan have a beneficiary who is a sibling of a beneficiary in the transferring plan?

  • if the answer is “Yes”:
    • go to step 3
  • if the answer is “No”:
    • contribution history of the transferring plan will be applied to the receiving plan and the transfer may have tax implications

Step 3: Is the receiving plan a family plan?

  • if the answer is “Yes”:
    • contribution history of the transferring plan will not be applied to the receiving plan and the transfer will not have tax implications
  • if the answer is “No”:
    • go to step 4

Step 4: Was the beneficiary in the receiving plan less than 21 years old when the receiving plan was entered into?

  • if the answer is “Yes”:
    • contribution history of the transferring plan will not be applied to the receiving plan and the transfer will not have tax implications
  • if the answer is “No”:
    • contribution history of the transferring plan will be applied to the receiving plan and the transfer may have tax implications

4.5.2. Over‑contributions due to a beneficiary replacement

When a subscriber chooses to replace the beneficiary of an RESP with another individual, the contribution history of the former beneficiary could be attributed to the replacement beneficiary. This may result in over‑contributions and associated tax penalties. Replacement of a beneficiary will not result in over‑contributions if one of the following conditions is met:

  • the replacement beneficiary is a sibling of the former beneficiary and is not yet 21 at the time of the replacement, or
  • neither of the beneficiaries have yet turned 21 and both are related to the original subscriber of the RESP, either by blood or by adoption

If the replacement beneficiary doesn’t meet any of the above conditions, this beneficiary could be in an over‑contribution situation with associated tax penalties.

4.5.3. Penalty taxes on over‑contributions

When an over‑contribution occurs, every subscriber is required to pay a 1% per month tax on their share of the over‑contribution until it is withdrawn.

For more information about over‑contributions, contact the CRA at 1‑800‑267‑3100.

4.6. Transfers between RESPs

The ITA allows for the transfer of monies from one RESP to another. However, the contract terms of a specific plan may not permit it. If subscribers decide to make a transfer, they can choose to transfer all of the monies in the RESP or only part of them.

Transfers may result in the repayment of the CLB, the SAGES, the BCTESG and the entire CESG amounts if it doesn’t satisfy certain conditions. This would include the Basic CESG and the Additional CESG. Descriptions of the conditions for eligible transfers of each education savings incentive are in Chapter 9. Registered Education Savings Plan transfers and the education savings incentives.

When doing a transfer between different RESP promoters, they share information between them. The RESP promoter receiving the transferred monies must also receive sufficient information to administer the RESP on a continuing basis, such as:

  • subscriber information
  • beneficiary information
  • the effective date of the plan
  • information about contributions, and
  • information about the education savings incentives

The RESP transfer form can be downloaded from the Forms tab at Canada.ca/RESPresources.

4.7. Distribution of assets from a RESP

There are 6 different ways that an RESP promoter can distribute RESP assets:

  • EAPs
  • accumulated income payments (AIPs)
  • rollover of RESP investment earnings into a Registered Disability Savings Plan (RDSP)
  • rollover of RESP earnings to a registered retirement savings plan (RRSP)
  • payments to a designated educational institution in Canada, and
  • payments of contributions to either the subscriber or the beneficiary

For more information, refer to Chapter 11. Options for assets remaining in the Registered Education Savings Plan.

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