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[Ontario] What exactly does RESP Income (EAP) include?

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  • Feb 26th, 2018 8:46 am
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[Ontario] What exactly does RESP Income (EAP) include?

For University of Waterloo, it asks for RESP Income, which is defined as:

Registered Education Savings Plan, Scholarship Trust Fund, or other Education Savings Plan. Indicate only the Educational Assistance Payment (EAP) that you will be using for your first year of studies.


From my understanding of the definition, EAP at least in Ontario consists of 1) earnings (dividends, interest, capital gains, basically any growth) from the subscriber contribution and 2) CESG. So would a good estimate of EAP to be used be [1) + 2)] / number of school years? Also, if it's a Family RESP, can the older sibling use the CESG granted to the sibling as long as it's within $7,200? Thank you.



https://www.canada.ca/en/employment-soc ... #h2.3-h3.2

2.2 EAP components
You have already seen that promoters are responsible for maintaining notional accounts Footnote 2 in each RESP. EAPs can be paid only from the RESP earnings and incentive accounts. Contributions are not included in EAPs.

Accounts used for EAPs
A beneficiary can use the incentives and earnings from an RESP in an EAP to pay for their PSE.

Earnings: Interest and other income accumulated in an RESP from all RESP accounts.

CESG : CESG is comprised of two components: Basic CESG and Additional CESG. CESG payments are pooled into one CESG account for all beneficiaries in an RESP.

CLB (per beneficiary): As Canada Learning Bond (CLB) is an incentive that must be tracked for individual beneficiaries, promoters must have separate CLB accounts for each beneficiary in family plans.

Provincial incentives: Provincial incentives are paid into RESPs by a designated provincial program, such as the Saskatchewan Advantage Grant for Education Savings (SAGES), the British Columbia Training and Education Savings Grant (BCTESG) and the Quebec Education Savings Incentive (QESI). Separate accounts are required for each province.

Accounts used for subscriber's property
All contributions remain the property of the subscriber. While the subscriber can give contributions to a beneficiary to pay for PSE, they are not included in EAPs.

Assisted contributions: An assisted contribution is an amount of money deposited into an RESP by a subscriber that attracts a CESG payment for a beneficiary.

Unassisted contributions: An unassisted contribution is an amount of money deposited into an RESP by a subscriber that does not attract a CESG payment for a beneficiary.
1 reply
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Jan 8, 2009
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You're only allowed to withdraw $5000 of EAP in the first 13 weeks anyway. We simply divided our RESP by 4 (although we know she'll attend grad school) and told the school/OSAP our child would have $5000 EAP (which she'll have to claim on her taxes).

You want to use as much EAP in the early years as you can to minimize taxes (for your child) and make sure that if they decide to leave school and you have to collapse the plan, you've got your contributions to claim back.

There's a lot of helpful info here: http://www.moneysmartsblog.com/resp-withdrawals/

I don't know how things work with a family plan. You'd need to ask your bank/RESP provider.

p.s. just to clarify - we took out 1/4 of our RESP for our child's 1st year - $5000 went to our child and is claimed on her taxes and the remainder came to us - that's been doled out as needed for residence, meal plan/flex dollars, living expenses, etc

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