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Thread: Taking $ out of RESP early

  1. #1
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    Default Taking $ out of RESP early

    I did some searches online and looks like one would have to pay the gov grant back right away if withdraw early.
    One cannot take some $ out and then put the same amount back 3 years later?

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    One cannot simply replace the same amount 3 years later.

  3. #3
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    Do not do this unless it is absolutely necessary.

    You must repay any grant money received on those contributions you are taking out and you lose that grant money forever.
    Amount withdrawn also reduces lifetime contribution limit.
    These opinions are entirely my own and do not represent any other person or organization.

  4. #4
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    What's the tax treatment on the gains?

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    Quote Originally Posted by The_Rural_Juror View Post
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    What's the tax treatment on the gains?
    Marginal Tax Rate + 20% Penalty...unless you have room to roll it into your RRSP.
    These opinions are entirely my own and do not represent any other person or organization.

  6. #6
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    Far better withdrawing from RRSP than resp, although that's still to be avoided.
    Quote Originally Posted by killramos View Post
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    You realize you are talking to the guy who made his own furniture out of salad bowls right?

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    Quote Originally Posted by dezmarez View Post
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    Marginal Tax Rate + 20% Penalty...unless you have room to roll it into your RRSP.
    20% penalty? That's outrageous!

  8. #8
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    Fair enough, will avoid this idea :-)

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