Congratulations! It’s Time to Withdraw From Your RESP Account – Here’s What You Need to Know

If you are beginning to look for answers to your questions about withdrawing money from your RESP to send your child off to school, please accept our congratulations!
Not only are you the proud parent of a smart kid, but being able to draw from this account means you made the wise decision to prepare for this day in advance.
Now that the time has come to start sending payment, there are some things you should know about how it all works.

 

When the RESP beneficiary (affectionately known as your son or daughter) is ready to go to school, the subscriber (owner of the RESP account) needs to start withdrawing money from the RESP account. To withdraw money you have to provide some proof to your RESP provider that the RESP beneficiary (child) is going to an approved post-secondary school. You don’t have to show receipts for specific purchases.

 

Proof of Enrolment

You must provide valid proof of enrolment documents in order for your provider to be able to process a withdrawal. If incorrect documents are submitted, post-secondary RESP withdrawals will be delayed.

Valid Document The Document Must:
An invoice or receipt of payment for tuition Be sent from the Office of the Registrar or printed from the school’s official website. If from a website, the school’s internet address must be clearly indicated.

Display the school’s logo/name.

Specify the full tuition amount.

Clearly indicate payment due date and date of receipt.

Timetable Be sent from the Office of the Registrar or printed from the school’s official website. If from a website, the school’s internet address must be clearly indicated

Clearly state the student’s name.

State the course length and the number of hours in a course or program per academic session.

Clearly indicate the semester of study (it must be within six months of the completed semester).

Proof of Enrolment letter from the Office of the Registrar Be on the school’s letterhead.

Be signed or certified by the Office of the Registrar

Clearly state the student’s name.

Clearly indicate the semester of study (it must be within six months of the completed semester).

Indicate the courses or program being studied

State that the student is enrolled/registered at the school.

*Note: One or more documents may be necessary to meet the requirements listed above.

Invalid Proof of Enrolment

The following documents are often submitted with a redemption request, but cannot be accepted as Proof of Enrolment.

 

Document Shortcomings of the Document:
Letters of acceptance Does not prove acceptance of the offer, enrolment or registration.
Offers of admission Does not prove acceptance of the offer, enrolment or registration.
Tuition fee breakdown Lists all the courses and tuition fees associated with a particular field but does not confirm the number of courses the student is enrolled in.
Student cards Does not verify the current year of enrolment.
E-mails Emails of any sort (including emails from the school) are not considered official documentation. They are difficult to authenticate and are not secure.
Invoices/receipts for “non-tuition” expenses or registration deposits/fees  Does not prove current enrolment and program details.

Note: Students may claim any education-related expense; however, receipts for books, rent, registration deposits etc., do not constitute proof of enrolment.

 *Invalid documentation is not limited to these documents

If you have questions about your RESPs we can help! 

Contact a BlueRock Financial Advisor

Neal Owen POSTED BY: IN General News