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How can I withdraw funds from my TD Direct Investing RESP?
If you're withdrawing funds from your RESP for the first time to help pay for your child's post-secondary education, there are a few important things to keep in mind.
Watch our MoneyTalk Life video for an overview of the RESP withdrawal process:
Remember that an RESP, or a Registered Education Savings Plan, is a registered tax-deferred plan. This means that you, as the subscriber (or the person who set up the plan), can’t withdraw these funds without taking a few initial steps:
- Plan ahead: Find out the dates when the college/university payments are due (tuition, residence or rent, etc.).
- Get official confirmation of school attendance: The school’s office of the registrar can provide an official document confirming your child's enrolment or you may be able to access it on the school’s website.
- Ensure the funds are in cash: It takes time to convert any investments to cash, so you'll likely have to sell stocks and/or bonds, and consider GIC maturity dates.
- Complete the RESP Withdrawal Request form: Fill out and submit the RESP withdrawal form (more information below) and seek assistance if needed.
Types of RESP withdrawals
Educational Assistance Payments (EAP)
An EAP is the payment of the RESP's income and government grant (e.g. Canada Education Savings Grant and Quebec Education Savings Incentive) amounts to a beneficiary – a person who will receive EAP under the terms of the plan.
Post-Secondary Educational Capital Withdrawal (PSE)
PSE withdrawals are payments of contributions to the subscriber or the beneficiary and are subject to the terms and conditions of the RESP (as the promoter can return the contributions when the contract ends or at any time before).
This type of withdrawal is composed of the contributions available in the plan and will be processed without any grant repayment to Employment and Social Development Canada (ESDC). Please note: The withdrawal is limited to the total amount of contributions to the plan assuming the plan has not incurred a loss.
The following withdrawal types are for non-educational purposes:
Non-Educational Capital Withdrawal (NCW)
NCW is a capital withdrawal by the subscriber when the beneficiary is not attending a post-secondary educational institution. Please note: NCW requests will trigger grants repayment back to the Government, and, once processed, cannot be reversed.
Accumulated Income Payments (AIP)
AIPs are withdrawals of accumulated income by the subscriber from an RESP when the beneficiary is not eligible for an Educational Assistance Payments (EAP).
RESP Withdrawal Request form
Once you've determined the type of RESP withdrawal that applies to you, complete the RESP Withdrawal Request form.
Mail the completed form and proof of enrollment issued by the post-secondary institution to TD Direct Investing (the mailing address is located on the withdrawal form) or drop it off at any TD Canada Trust branch.
Normally, payment can be mailed out within a week of receipt if all documents are in good order.
Please note that the answers to the questions are for information purposes only for the products discussed. Individual circumstances may vary. In case of discrepancy, the documentation prevails.