Accessing Net Contributions
As your student plans the next step after high school, you will begin to make decisions on when and how you would like to receive payments from your RESP. Once your student has proof of enrolment in a qualified post-secondary program, you can take that first step by requesting net contributions from your plan. How you do this depends on the type of plan you have: Family Group Plan; Flex First or Family Single Student Plan; Heritage Plans.
Family Group Plan
Update June 2019: Information about the maturity application process has been updated to reflect changes to the Family Plan that were approved by subscriber vote on May 30, 2019. Customers approved the wind up of the Group Plan and to transfer customer assets to the Family Single Student Plan (Single Student Plan) on January 1, 2020.
The Family Group Plan was meant to provide funding for four years of post-secondary studies, beginning in the year your plan matures – typically when your child turns 18. As that date approaches, you will receive information with your Statement of Account that explains the three options available to you. You will be asked to make your choice before July 31st of your “year of maturity”.
Before withdrawing funds from your Family Group Plan at maturity, you will decide which option best suits your student’s post-secondary education plans and send instructions by completing the maturity application form before the deadline.
- Option 1 – Withdraw Contributions: Choose Option 1 if your student will be attending a post-secondary program in 2019 and you only want to withdraw your contributions in 2019. Your remaining plan assets including income earned on your contributions, grants, grant income plus your proportionate allocation of remaining attrition income will transfer to a Single Student Plan on January 1, 2020 providing you maximum flexibility for future withdrawals.
- Option 2 – Delay Decision: Choose Option 2 if your student will not be attending a post-secondary program in 2019. Your plan’s assets including your contributions, income earned on your contributions, grants, grant income plus your proportionate share of remaining attrition income will be transferred to the Single Student Plan on January 1, 2020 providing you maximum flexibility for future withdrawals.
- Option 3 – Transfer to Family Single Student Plan in 2019: Choose Option 3 if your student is attending a post-secondary program in 2019 and you want maximum withdrawal flexibility in 2019. Please note you will not receive your proportionate share of remaining attrition income if you choose this option as you will be transferring to a Single Student Plan prior to the wind up of the Group Plan taking place January 1, 2020.
For more information about the May 30, 2019 subscriber vote please click here. For more information about withdrawing funds from your Family Group Plan -at maturity, download our ”Your Family Group RESP At Maturity” Fact Sheet.
If we don’t hear from you by December 31st, 2019
- If we do not hear from you by December 31st, 2019 your plan’s assets including your contributions, income earned on your contributions, grants, grant income plus your proportionate share of remaining attrition income will be transferred to the Family Single Student Plan on January 1, 2020 providing you maximum flexibility for future withdrawals.
Flex First Plan or Family Single Student Plan
With an individual RESP, like the Flex First Plan or Family Single Student Plan, you have the flexibility to withdraw what your child needs, when it’s needed, or keep you plan intact for up to 35 years. It’s simple and easy to request a withdrawal of your contributions .
Loyalty Bonus for Flex First: When you request a refund of your net contributions, you will also choose how much of the loyalty bonus will be returned to you or your student.
With the Heritage Plans, you will choose between the Self-Determined Option or Scholarship Option within 180 days of the maturity date, but no later than the maturity date. The Self-Determined Option can be a good choice if your student is pursuing a program of study that is less than 2 years. The Scholarship Option provides three payments options and is typically for students who plan to attend a two to four-year post-secondary program.
For more information about withdrawing funds from your Heritage Plans at maturity, click here.
Proof of Enrolment
The government of Canada wants to ensure that students enrolled in an RESP are using their funds towards the cost of post-secondary studies. According to the Income Tax Act, proof of enrolment in a qualifying program is required to maintain the government grants in your plan. We require verification of enrollment when you are making a post-secondary education (PSE) withdrawal from your RESP which you can easily download from your school’s website or obtain from your school’s Registrar’s office. If one if not available, you can complete the Verification of Enrollment section on the maturity application form and affix your Registrar’s seal/stamp on it prior to submission.