What happens when I’m ready to take my money out of the RESP?
Once your child enrolls in eligible studies, they can access Education Assistance Payments (EAPs). These are used to pay for post-secondary school expenses like tuition, books and transportation.
EAPs are made up of earnings on your contributions, the government grants your child receives, and the earnings on these government grants. Your contributions will be returned to you as the subscriber.
When your child is enrolled in a qualified post-secondary program, you can determine how much they would like to withdraw from the RESP. That’s when you’ll decide how much of the income to withdraw for your child’s EAPs, and whether you want to withdraw any of your contributions.