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What happens when an RESP beneficiary decides not to pursue post-secondary education?

If there is another beneficiary on the RESP, they may be able to take advantage of the grant and contribution received by the plan. Otherwise the money that you have contributed to the RESP is returned to you and the grant money is returned to the government.    

If there are no other beneficiaries you may be eligible to have any growth in the plan paid to you as an "accumulated income payment". An accumulated income payment is taxable income and is also subject to an additional penalty tax; however you may be able to reduce the tax by contributing some or all of the amount to your RSP. Alternatively, the investment earnings could be forfeited to a designated educational institution. 

To complete this request, please speak with a TD Direct Investing Representative 24/7 at 1-800-465-5463 .

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