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RESP Withdrawal Rules for Education Expenses

Learn the rules for accessing RESP funds, when withdrawals are allowed, and how to plan them tax-efficiently

When the time comes to pay for your child’s post-secondary education, the Registered Education Savings Plan (RESP) provides a valuable source of funds. However, withdrawing from a RESP involves specific rules and timing considerations that are important to understand.

Knowing when you can make withdrawals, how funds are categorized, and what gets taxed ensures you use the RESP effectively while maximizing available funds.

When Can You Withdraw from a RESP?

You can start withdrawing funds from a RESP when the beneficiary (usually your child or grandchild):

  • Is enrolled in a qualifying post-secondary education program.

  • Can provide proof of enrollment to the RESP provider (such as an official letter from the institution).

Qualifying programs include:

  • Full-time or part-time studies at universities, colleges, trade schools, or CEGEPs.

  • Certain apprenticeship programs and other designated educational institutions.

Once enrollment is confirmed, you can begin making withdrawals to cover eligible expenses.

Types of RESP Withdrawals: Contributions vs. Growth & Grants

RESP withdrawals fall into two categories, each with different tax treatments:

Withdrawal Type Key Details
Post-Secondary Education (PSE) Withdrawals Withdrawals of your original contributions. Not taxable. No withdrawal limits if funds are used for education expenses.
Educational Assistance Payments (EAPs) Made up of investment growth and government grants (CESG, CLB). Taxable to the student beneficiary, but taxes are usually minimal due to low income.

At Optimize, we help you structure withdrawals to balance these sources efficiently.

How Much Can You Withdraw?

For PSE withdrawals (your contributions), there are no withdrawal limits. You can withdraw as much as needed for education expenses.

For EAPs:

Withdrawal Type Limitations
PSE Withdrawals (Contributions) No limit — withdraw any amount as needed for education-related expenses.
EAPs First 13 consecutive weeks: up to $8,000 for full-time students (lower for part-time). After 13 weeks: additional EAPs allowed as long as enrollment continues.

These limits are set by the government to ensure RESP funds are used appropriately. Optimize tracks these thresholds with you to ensure compliance.

What Education Expenses Can RESP Funds Cover?

RESP withdrawals can be used for a wide range of education-related expenses, including:

  • Tuition and student fees.

  • Textbooks and course materials.

  • Living expenses (rent, food, transportation).

  • Technology required for studies (laptops, software).

While there’s flexibility, you must retain proof of enrollment and, in some cases, receipts for major expenses.

How Optimize Helps You Plan RESP Withdrawals Effectively

At Optimize, we ensure your RESP withdrawals are made at the right time and in the most tax-efficient manner. We help you:

  • Determine when and how to withdraw PSE amounts vs. EAPs, managing tax impact.

  • Coordinate RESP withdrawals with your family’s cash flow needs.

  • Track EAP withdrawal limits and eligibility rules, avoiding compliance issues.

  • Model tax implications for the student beneficiary, ensuring withdrawals are managed strategically.

  • Revisit your RESP withdrawal plan each academic year, keeping it aligned with your child’s educational journey.

With Optimize, withdrawing from a RESP becomes a smooth, well-planned process that fully supports your child’s educational goals without tax surprises.