Personal Finance

RESP - Withdrawl

  • Last Updated:
  • Dec 22nd, 2020 9:30 am
Sep 27, 2012
222 posts

RESP - Withdrawl

I want to do withdrawals from RESP. I did some withdrawals last year and couple few weeks ago. I want to do another one tomorrow. I am trying to do as much withdrawals as possible from the EAP portion this year. I read there is a clause that you cannot withdraw more than $7200 from the CESG portion in total for each child. But my issue is I don’t know how much CESG portion I have withdrawn when I did withdrawal few weeks ago. Call to TD couple of times didn’t get me an answer even after their back office did some calculations but didn’t give me answer.

This is for family RESP plan. Is this $7,200 CESG limit really exist in family plan? When I review this link ... #h2.2-h3.3 it says CESG & BETESG can be shared between siblings. It seems to me from this link that CESG withdrawal can be shared with siblings so even if one child go above $7200 limit, it will be ok but I can’t find same information anywhere else. I think TD will ultimately send me letter how much CESG portion I withdrew when I did last EAP withdrawal few weeks ago but it will be too late for me as I need to do withdrawals tomorrow.

Anybody who have experience can comment.
1 reply
May 9, 2018
73 posts
I found this. Although I'm surprised you didn't receive a letter already as I get them within a week (like a confirm almost)

Understanding the proportion component of EAP formulasPromoters must use the Canada Education Savings RegulationsEAP formulas to determine the proportional amounts to take from each account available for an EAP, in an equal share. Proportion values depend on whether or not the RESP has earnings.Proportion to take from all available accountsRESP with earningsRESP without earningsA / (C – D – E) A / (B + F + G) Where: A = amount of the EAP B = balance in the beneficiary’s CLB account of the RESP immediately before the EAP is made C = fair market value of the property held in connection with the RESP immediately before the EAP is made D = total of all contributions made to the RESP before the EAP is made that have not been withdrawn E =total in all CLB accounts of the other beneficiaries under the RESP immediately before the EAP is made F = balance in the CESG account of the RESP immediately before the EAP is made G = total of all amounts paid into the RESP under a designated provincial program (total of all provincial incentive account balances in the RESP immediately before the EAP is made) ... es/ICE.pdf


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