Questrade resp - family plan - directing contributions

We have a self directed family plan with iTrade. I usually trade shares in-kind from my TFSA to the RESP account and they always ask how I wish the shares to be allocated. So it isn't automatic in our case.

But we've contributed every year so there are no gaps.

adeel wrote: ↑
We are behind for my oldest son and so we need to catch up - i've read that family plans automatically split contributions based on number of children...but since we are behind and want to catch up by primarily contributing for our oldest only...is there a way to do that?

im only interested in family plan for ease of management and to minimize trading feees (as applicable if I want to trade a little more actively id have to triple my commission cost) although ive read that with the grants they can be harder to manage on a family plan side since funds get co-mingled

From what i understand, you can only catch up for the calendar year before now. So today, you can contribute to catch up for 2019 only (nothing before that). And since the max CESG grant is $500 (20%), whatever you contribute above $2,500 per child is not matched.

If I were you, and have the funds, contribute $2,500 now to catch up 2019. Then another $2,500 for 2020 year (now you're "current" for your eldest son). You can also contribute to your other children keeping $2,500 in mind, if your cashflow allows.

As for assigning contributions, you need to fill that on the Family RESP forms when you signup with Questrade. The form is called RESP Contribution Allocation. On this, you will designate all 3 children as beneficiaries, and also how much of each contribution is allocated to them individually (eg: $120 contributed will be evenly split at $40 {33.3%} for each child). This form keeps the contributions totals in check on a beneficiary basis, and I'm told, Questrade uses this same allocation to claim CESG as well. Just remember to update the same form when child #1 reaches 18 (still remains a beneficiary, but no longer considered for contributions).

Yes, having a FRESP is easier to manage and keep fees lower!

With RBCDI, I have my kids set up with a 50/50 split but I needed to add a catch up contribution for one of them.
In my case I just contacted RBC via secure chat and gave them instructions for a one time contribution to allocate more to one child. Otherwise the contribution would be automatically split according to the 50/50 split I originally set up.

I think you would just need to contact questrade via chat or phone whenever you want to make a contribution that is different from the original instructions on the family resp application.

I called questrade for a similar situation after my son was born and I already maxed out my daughter for the year and they said if I wanted to redirect jut one time for my son this year allocation to 100% then I just need to write a letter of direction and then submit to them via online upload. They managed to screw that up anyways and had to call them but they corrected it.

In subsequent years I had set it up where it’s 50% split

I have two children and they have 10 years difference. In order to manage RESP easily, I opened two separate RESP accounts. Because RESP accounts can only keep open for 38 years. This means if I open a family account, my RESP account will be closed at my 2nd son at 28.

If they shares one RESP accounts, how to allocate investment income when withdrawal. Assuming the total contribution is 10,000, the balance is 20,000 when withdrawal. Can the first person withdraw 10,000(income) + 10,000/2(con.)?

lhq2100 wrote: ↑
If they shares one RESP accounts, how to allocate investment income when withdrawal. Assuming the total contribution is 10,000, the balance is 20,000 when withdrawal. Can the first person withdraw 10,000(income) + 10,000/2(con.)?

RESP amounts are tracked in 3 "categories" - your contributions, CESG claimed and growth within the RESP. The RESP administrator (like Questrade for example) has to track the figures in each of these categories when withdrawals are made. At each withdrawal, they have to report these figures to Service Canada and issue you appropriate receipts for CRA purposes.

The general idea is to use growth first (as this is taxed at the child's marginal tax rate - likely very low income), then use CESG (free money) and use your contributions last (this is after tax money you put in earlier, so if a kid doesn't continue post secondary or you have a surplus in the RESP, you can transfer the remainder to your RRSP without much effort).

As previous posts stated you can only catch up for the previous year (2019). If you want to top up for the eldest child you will have to reach out to Questrade to allocate the dollar amount to the eldest child. This way the eldest child receives the grant for current and previous year.