Overview

You can withdraw funds from your registered education savings plan (RESP) for educational purposes, non-educational purposes, or as an Accumulated Income Payment (AIP). The type of withdrawal determines what funds you can access and the tax implications.

Educational Assistance Payment (EAP) withdrawals

An Educational Assistance Payment (EAP) is a withdrawal from your RESP made to help your beneficiary pay for post-secondary education expenses. EAPs include the grants and investment earnings from your RESP.

How to request an EAP withdrawal

You must contact our support team with proof of enrollment in a post-secondary institution. Proof of enrollment must include the following details:

1. Beneficiary name
2. School name and logo
3. Name of program
4. Length of the term/academic year (must show the start and end dates and be for the current year)
5. Full or part-time status of the student

Once we have received your request, we will send you the necessary forms to complete your withdrawal.

Withdrawing funds for non-educational purposes

You can withdraw the contributions you've made to your RESP for non-educational purposes before your beneficiary turns 21. When you make this type of withdrawal:

• Any corresponding government grants must be returned to the government. We'll help you do this when you request a withdrawal. If you are closing the account, all grants must be returned in full.
• Any corresponding investment earnings (gains) from your investments will need to remain in the account. If you're closing the account, you can gift the gains to an educational institution.

How to request a non-educational withdrawal

To make a withdrawal, you must contact our support team and tell us that you're making a withdrawal for a non-educational purpose.

Withdraw earnings as an Accumulated Income Payment (AIP)

An AIP is a withdrawal of all contributions that you made to your RESP (minus any losses in the account). AIPs are considered taxable income to the account owner and are subject to an additional 20% tax (or 12% in Quebec). However, you can avoid this penalty tax by transferring the AIP funds directly to your registered retirement savings plan (RRSP) or spousal RRSP, up to a maximum of $50,000, provided you have enough RRSP contribution room.

Eligibility

You may be able to make an AIP withdrawal if:

• The RESP account has been open for at least 10 years
• All current or former beneficiaries are 21 or older
• All current or former beneficiaries are no longer pursuing post-secondary education
• You're not naming another eligible beneficiary of the RESP

Before we can process an AIP, you must repay all government grant funds (including CESG, CLB, and BCTESG) to the government.

How to request an AIP withdrawal

To request an AIP withdrawal:

1. Complete our Non-Educational RESP Withdrawal Form:
   • Single-owner RESP form
   • Joint owner RESP form
2. Ensure you check the box marked "AIP Withdrawal" on the form
3. Indicate on the form whether you'd like the funds
   • Transferred to an RRSP/spousal RRSP, or
   • Paid out to you directly
4. Contact our Client Support team and let us know you completed the form. We’ll help you complete the request.
   
   Tip: You don’t need to download and send the form to the Client Support team. We can access your completed form from our systems.