When your child starts post-secondary education, you recover the amounts you invested at the pace you choose. You don’t pay any taxes on the amounts returned to you. Your child receives the grants and interest generated on the total balance of the RESP account through Educational Assistance Payment (EAP). Since students generally have a lower tax rate, the tax bill to pay on EAPs is often minimal.
If your child doesn’t pursue a post-secondary education, you can:
- Designate another child in the family
- Withdraw your original contributions tax free
- Transfer your accumulated investment income to your RRSP under certain conditions
Choosing to invest in an RESP at iA Financial Group is choosing security. It’s also a guarantee, depending on your choice of investments, that the amounts deposited in the RESP will be fully available when your child needs them.
Choose what’s best for your child’s future: invest in an RESP.