Get money for your education! How to disburse your RESPs?
To disburse your RESPs (Registered Education Savings Plans), you'll need to take the following steps:
Check the conditions of your RESP: Before proceeding with the disbursement, familiarize yourself with the specific conditions of your RESP. Each plan may have different rules and requirements regarding withdrawals. Make sure you understand the terms and conditions for withdrawals, including waiting periods, restrictions and possible tax consequences.
Prepare the required documents: You'll need to gather the necessary documents to request a disbursement from your RESP. Typical documents may include proof of enrolment at an eligible educational institution, your social insurance number, valid identification and the withdrawal forms provided by your financial institution.
Complete the withdrawal forms: Contact the financial institution that holds your RESP to obtain the appropriate withdrawal forms. These forms may be available online at the financial institution's website, or you can request them directly from a customer service representative. Fill in the forms with the requested information, making sure to provide precise details relating to your disbursement request.
Submit the forms: Once you've completed the withdrawal forms, you'll need to submit them to your financial institution. Make sure you understand the submission process, whether you send them by mail, drop them off in person or submit them electronically, depending on the methods accepted by your financial institution.
Wait for approval: Once you've submitted your withdrawal forms, you'll need to wait for your application to be approved. Processing times may vary from one institution to another, so check with your financial institution for estimated times.
Receive the funds: Once your disbursement request is approved, the funds will be transferred from your RESP to your personal bank account. The time required to receive the funds may depend on the method of payment chosen, such as direct deposit or cheque.
It's important to note that RESP withdrawals are considered taxable income for the beneficiary, as they are generally made up of government grants and investment income.
You'll need to take these tax implications into account when declaring your income.
We recommend that you consult a financial advisor or tax professional for advice specific to your situation.
If you have any doubts, please do not hesitate to contact me.
Patrick Joseph Financial Services
(514) 984-7508