Choosing your RESP payment option
When you set up your Heritage Plan or Impression Plan RESP, you also set a "Maturity Date" – usually July 31 of the year you expect your child to enter the first year of a post-secondary program. If necessary, your plan's maturity date can be delayed or advanced by up to two years* to suit your child's needs.
At the Maturity Date, you'll need to choose the appropriate pay-out option:
Heritage Plans
- Self-Determined Option. If your Beneficiary is enrolled in a program that lasts less than 2 years, the Self-Determined Option is usually the best choice.
Learn more about the Self-Determined Option
- Scholarship Option. If your Beneficiary will be taking a 2, 3 or 4 year post-secondary program, you should select the appropriate Scholarship Option.
Learn more about the Scholarship Option
Impression Plan
- Impression Plan Subscribers are free to decide the amount and timing of their Educational Assistance Payments (EAPs) as long as the Beneficiary is registered at a recognized educational institution.
Learn more about the Impression Plan
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What happens if our plans change?
Q. Can I get my contributions back if my child doesn't go on to college or university? And what about the interest earned – do I lose that? |
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A. It is important to keep in mind that your Maturity Date can be delayed by 1 year at a time up to 2 years, allowing your child more time to make a final decision about post-secondary education.
On the subject of interest, you have a few options:
- As long as your child attends a minimum 3-week program of at least 12 hours per month in Canada – or a minimum of 13-weeks abroad at a recognized post-secondary institution – you can use the Self-Determined Option to take your savings. Interest on savings, government grants and interest earned on grants is available to a student in the form of Educational Assistance Payments (EAPs). These EAPs, along with your savings (less membership fees, depository fees and, if applicable, insurance premiums), can be paid out in whole or in part at any time up to 35 years after enrollment in the plan*.
- You can transfer up to $50,000 of your RESP's accumulated interest into your own or a Spousal RRSP*.
- You can withdraw the interest in cash (subject to a 20% withholding tax on top of your regular tax rate)*.
- You can transfer the Plan to another child or even to yourself for educational purposes*.
As always, a Heritage Representative will be happy to explain everything to you. |
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* Certain conditions apply. See Prospectus for details