Your RESP at maturity
As your plan approaches maturity, you decide when and how you would like to withdraw funds from your plan. Maintaining the government grants in your RESP requires that you keep your contributions in your RESP until the time your student is enrolled in a qualified program, as per the rules of the Income Tax Act.
When your plan reaches maturity, usually on July 31st of the year your student turns 18, you can begin to withdraw funds from your plan. We’ll send a notice to you months before your plan matures asking for instructions. You have an option to allow your RESP to mature or to delay your maturity date to the following year. We need to hear from you before July 31st of your maturity year to ensure we know which option you will choose. Your maturity year is indicated on your annual statement of account.
If your student will be entering an eligible program, you can choose to mature your plan and maintain grants. Your contributions will be paid out to you, or your student, through a one-time lump sum payment. This maturity payment is the single largest portion of your RESP and is meant to cover the bulk of the cost of a student’s education over the course of their studies. If your student is not ready to attend post-secondary studies, you have an option to delay the maturity year or mature the agreement and waive the grants. If you withdraw contributions from an RESP while your child is not enrolled in school, it’s important to know that government grants associated with those contributions must be returned to the government.
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. As such, you will need proof of enrolment in a qualifying program to withdraw your contributions at maturity in order to maintain the government grants in your plan. Acceptable proof of enrolment is a copy of the tuition payment receipt, an enrolment letter or you can complete the verification of enrolment section on the maturity form for your plan type.
Everything you need to know about maturity
For more information about withdrawing funds from your Family or Classic plans at maturity, download our Maturity Fact Sheet.
For more information about withdrawing funds from yor Heritage Plan at maturity, click here.
Considerations if you have a Family Group Plan
Now that the time is getting closer to post-secondary, it’s good to start evaluating your student’s education plans. If it is unlikely your student will attend 3-4 years of post-secondary education, then transferring from the Family Group Plan to the Family Single Student Plan could be a good option.
If we don’t hear from you
If government grants have accumulated in your plan, then we will retain your investments in the Family Group plan for two years following your year of maturity. After that point, your plan will be automatically moved to the Family Single Student plan. Please keep in touch so we can help you with your options at maturity.
Considerations if you have a Heritage Group Plan
With the Heritage Plan, choosing the Self-Determined Option can be a good choice if your student is pursuing a program of study that is less than 2 years.