What if your child decides not to go the post-secondary route?
If you’re tapping into Registered Educations Savings Plans this fall to pay for your kids’ post-secondary schooling, keep in in mind that there are plenty of rules about how RESPs are administered. And some parents will have to deal with the question of what happens to the RESP if their child decides not to go on to post-secondary school just now. Here’s a look at what’s involved.
Time to pay the post-secondary piper
Around about this time of year, the great Canadian university hunt gets into full swing. Universities make the rounds at high schools and fairs, looking to entice students to their schools. Students and parents make the rounds, check the programs, visit the universities, and make their applications. In the fall, the kids go off to college. And the tuition bills come in. That’s when it’s time to start making withdrawals from Registered Education Savings Plans (if you had the foresight to set them up, say, 15 years ago!) The rules for RESP withdrawals are fairly simple, but there are a few wrinkles to be aware of. READ MORE
These plans will help you create tax-free dollars
If your New Year’s financial resolutions have already evaporated, despite your best intentions, you might try just one more: create tax-free dollars. There’s no special magic involved here. Nor is there any particularly daunting effort needed. The money is just sitting there waiting for you to take it. Here’s how. READ MORE
How to cope with higher education’s sticker shock
There’s no two ways around it: The cost of a post-secondary education is high. For some, it’s a real challenge to make ends meet while attending college or university. In fact, students can expect to pay a total of about $60,000 for an average four-year post-secondary education program, including tuition, books, board and lodging, and living expenses. It’s more than double that for professional degrees like law, medicine, dentistry, and engineering. READ MORE
Special rules apply to non-residents
When a Registered Education Savings Plan (RESP) matures, the beneficiary of the plan (usually the child for whom the plan was opened) can withdraw the funds for post-secondary tuition. Because they will likely be in a very low tax bracket, little or no tax will be payable on the withdrawals. That’s what makes starting an RESP early so attractive. READ MORE
How RESPs pay out for post-secondary expenses
If you have kids going off to college or university this fall, you’ll be tapping into any savings you’ve made through a Registered Education Savings Plan (RESP). But those payments aren’t treated like a bank account. There are plenty of rules about how they’re administered. READ MORE
How to use RESPs to save for post-secondary schooling
May and June bring thoughts of summer vacations, the end of the school year, and graduations. For many students, post-secondary education is only a few years away. And their parents are often worried they won’t be able to afford to send their kids to university. Unless they start planning now, they could be right. Here’s why. READ MORE
It’s a terrific tax shelter, but you have to know the rules
If you’re considering opening a Registered Education Savings Plan (RESP) to help fund rising college costs, you might find the rules a bit complicated and information that seems to come from several different government departments. To help you get a handle on this powerful tax shelter, here’s a crash course in basic RESP rules and regulations you’ll need to know. READ MORE
How to withdraw funds for post-secondary expenses
If you have kids going off to college or university this fall, and you’ve accumulated substantial savings in a Registered Education Savings Plan, now’s the time to tap into those funds. But you won’t be able to use the RESP like a bank account. Your college-bound kid will be getting something called “Educational Assistance Payments,” and they come with a thick handbook of rules and stipulations. Here’s how it works. READ MORE
Are Canadian kids living in the U.S. eligible for RESPs?
While relatives such as grandparents are eager to contribute to their grandkids’ education through a Registered Education Savings Plan, is it even possible if the student lives in the U.S. even though he or she might be a Canadian citizen? And if so, would they have to attend university or college in Canada to benefit from the RESPs. The answer is a little complicated, and much depends on the student’s status as a Canadian resident. READ MORE