If I withdraw the money before my child pursues education after high school, will I have to pay taxes?
You will not be taxed on the amount you contributed to the RESP, but you will have to pay taxes on the money that you earned in your plan as interest. This money is called “accumulated income”. It will be taxed at your regular income tax level, plus an additional 20 percent.
If your child decides not to continue education after high school, you may withdraw the income earned in the RESP if:
all the persons named in the plan are at least 21 years old;
Post by Lulu39 If I withdraw the money before my child pursues education after high school, will I have to pay taxes?
You will not be taxed on the amount you contributed to the RESP, but you will have to pay taxes on the money that you earned in your plan as interest. This money is called “accumulated income”. It will be taxed at your regular income tax level, plus an additional 20 percent.
If your child decides not to continue education after high school, you may withdraw the income earned in the RESP if:
all the persons named in the plan are at least 21 years old;