Resp

[Amateur Hunter]

After 20 years of contributing it's time to put this thing (RESP) to good use. My daughter is going to university and wondering if anyone on this forum has any experience with this, how it works, how to withdraw money etc.
Any help is highly appreciated
Thanks

[Nyksta]

Dont know about RESP, but my bank charges me $50 transaction fee on each RRSP withdrawal. Might look into any service fees to help plan on how you use it.

[bat119]

Google is your friend
http://www.moneysmartsblog.com/resp-withdrawals/

[tfm00]

To start drawing from the RESP, it is quite easy. Once you have her acceptance and tuition invoice you submit that to the provider for an EAP withdrawal (educational assistance program). The provider who your RESP would have you or whomever is the subscriber sign the form and send into the provider and turn around is usually a day or 2 to be deposited to your bank account. Great program and to bad more people don't know about it. Let me know if you have any other questions, do numerous withdrawals for clients each semester and it is quite simple.

[riden]

I use BMO.


Worst part of the whole thing, I can only do a redemption through a fax and then there must be a 20 ish min phone call to verify everything. And it's EST.

It's very easy, but a bit of a PITA playing phone tag. Usually, I lose a lunch hour to get it done.

Make sure your girl has a letter of acceptance with enrollment dates. They know what to give her, she just needs to know what to ask for.

[Amateur Hunter]

Originally Posted by riden

I use BMO.


Worst part of the whole thing, I can only do a redemption through a fax and then there must be a 20 ish min phone call to verify everything. And it's EST.

It's very easy, but a bit of a PITA playing phone tag. Usually, I lose a lunch hour to get it done.

Make sure your girl has a letter of acceptance with enrollment dates. They know what to give her, she just needs to know what to ask for.

Besides letter of acceptance doesn't she need proof that she paid tuition?
And could you elaborate on she needs to know what to ask for, because she ( and I ) are new to this and we have no clue what to ask for .
Thanks

[riden]

Originally Posted by Amateur Hunter

Besides letter of acceptance doesn't she need proof that she paid tuition?
And could you elaborate on she needs to know what to ask for, because she ( and I ) are new to this and we have no clue what to ask for .
Thanks

OK, I'll do my best. I am no tekie though, so my explanation may be poor. Ask any questions.

Your daughter may need more help than you, she will need to learn how to use the student portal. I asked my daughter (U of A) and she explained what she did, and since I need to get her tuition money too, she got the letter in front of me. Here is what she did:
1) went on the U of A portal called Bear Tracks. I am sure all colleges have their own version of a portal.
2) logged on under her specific user
3) under "verification documents" she found "enrollment verification letter" and the portal generated it for her.

That's all you need.

No proof of payment is necessary. She can spend the money on whatever she needs and doesn't have to prove anything to the bank. I have done this with 3 children through BMO.

Any questions pipe up

[solocam3]

Keep all her receipts. My daughter is in her final year of Grant MacEwan and she pulled a Student Loan this year. Before she gets any money from the loan, they deduct the Tuition from it. For her RESP she has used it for Rent as well as Books. Keep all her receipts

[HunterDave]

Ridden has filled you in well. It’s been 10 years since I used it for my Daughter but my BMO branch wanted the university receipts that I printed out to be stamped at the MacEwen office. Maybe not required anymore or it could have just been my branch. Tell her to keep all of her receipts for her books as well. I didn’t find things too difficult to get done but I paid upfront and then put the RESP money back into my account.

[Amateur Hunter]

Thanks guys for valuable advices
If anyone has any more good info please add them on

[Camdec]

A couple other items to be aware of. You can only withdraw $5000 of Education Assistance Payment (EAP) for the first 13 weeks of schooling. EAP is comprised of the Grant money & Growth on money. This is also the funds that will be taxable in the child’s hands. You can withdraw principal (your contributions) as well though. Your financial institution will have a breakdown of EAP vs principal within the account. I generally suggest getting EAP out of the RESP sooner rather than later, even if they don’t actually need the money. The rationale being to get the EAP money out and taxed in their hands while they are likely in a low marginal tax rate.