Registered Education Savings Plan (RESP) – Request For Withdrawal
Use this form for non-educational capital withdrawals, accumulated income payments (AIP), payments to a designated educational
institution or over-contribution withdrawals.
PLAN TYPE
❑ Individual plan ❑ Family plan
/
Representative name Dealer name Dealer/rep number
Subscriber name Joint subscriber name Date (DD/MM/YYYY)
Beneficiary name Beneficiary S.I.N. (MANDATORY) RESP contract number
SOURCE OF FUNDS
Fund number Fund name Amount % Amount $
Total:
TYPE OF REDEMPTION
When making a withdrawal from an RESP, the total equity of the plan is divided into three categories:
Capital. The total amount of all contributions made to the plan, since its inception. Capital, when withdrawn, is neither taxable to the Subscriber
nor to the Beneficiary, in all types of withdrawals.
Grant. Government grants received by the RESP are tracked separately between Canada Education Savings Grant (CESG) and Canada Learning Bond
(CLB)and provincial grants if applicable.Government grants must be withdrawn directly to the beneficiary or may be otherwise refunded to
the appropriate government authority.
Income. After accounting for capital and government grants, any remaining amount in an RESP is considered income. Income is taxable to the
beneficiary for the year in which it is withdrawn as an Educational Assistance Payment (EAP).
❑ Non-educational capital withdrawal
This is a non-taxable withdrawal paid to the subscriber of the Plan composed of contributed capital only for non-educational purposes. There is no limit
on the dollar amount and frequency of non-educational capital withdrawals. Non-educational capital withdrawals are not taxed and therefore no tax slips
will be issued for this type of withdrawal. If both Assisted (contributions that have received CESG) and Unassisted contributions (contributions that have
not received CESG) have been made into an RESP, Assisted contributions will be redeemed first as the corresponding grant received needs to be repaid
to the government. If the contributions were enhanced by a grant, a grant repayment must be made to the government upon completion of
this withdrawal.
Total non-educational capital withdrawal amount requested: $
❑ Accumulated income payment (AIP)
An AIP is a distribution of earnings from the RESP to the subscriber. It must be made to or for a single subscriber at a time for income tax purposes. When
an AIP is made from an RESP, the plan needs to be terminated by the last day of February in the year following the year in which the first AIP is made.
An RESP may allow for an AIP when all of the following conditions have been met:
• the subscriber is a resident of Canada AND
• the payment is made to one subscriber of the plan AND
• the plan has been open for 10 years and each individual who is or was a beneficiary is over 21 years of age and not eligible for an EAP OR
• the plan is being closed by the end of the 35th year after the plan was opened OR
• all beneficiaries have died.
When an AIP is made from an RESP, the remaining CESG and CLB must be repaid and the subscriber must report the AIP as taxable income.
AIP withdrawals are subject to two different taxes: regular income tax and an additional 20% tax. In Quebec, the 20% tax is divided as follows:
12% to the Canada Revenue Agency (CRA) and 8% to Revenue Quebec.
To reduce taxes owed, clients can choose to transfer the earnings in their RESP to their RRSP or their spouse’s RRSP. CRA form T1171 (Tax Withholding
Waiver on Accumulated Income Payments from RESPs) must be completed.
iA CLARINGTON INVESTMENTS
