hi friends
we are planning to leave country for few years after citizenship

, the question is


what are the disadvantages if i want to discontinue my sons resp

will i get my full amount paid back or will there

be some deduction .

did try to search here but am honestly confused .

thanks for your replies

The Govt. grant portion will be taxed, may be the interest portion too.

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Reiki Grand Master

1.If you withdraw money from RESP now you can keep your contribution but return the CESG (government contribution) and the growth if any has to be left in the plan for 10 years.
2.Leave it as it is and discontinue further payments and upon return make use of the facility of remaining CESG eligibility by making further contributions .
3.If the child does not go to university you may be allowed to name another beneficiary ,transfer money into RRSP account (less CESG).
different combinations are possible and may vary with the particular institiution you are having RESP with.
Do read the link for more detail about RESP.

http://www.hrsdc.gc.ca/en/hip/lld/cesg/publicsection/faqs_resp.shtml

If it is a scholarship plan like USC, CET and the like, you might get dinged with the enrollment fees and several other charges.
If u explain exactly where it is, in a bank, in GICs, mutual funds, t-bills, at a Trust Company, in a Scholarship plan, I am sure we can give you plenty of info and armed with that you can meet the person/institution you set the plan up with and ask him/her what would happen should you terminate/discontinue/take a break and so on and then decide what to do.

The answer lies in the plan itself - individual/group/bank/self defined etc. What are your future plans? Without sharing the basic information no one would be able to answer correctly and you will end up getting different answers/suggestions. You might save your grant and growth. You can send me a PM and I can suggest you accordingly.

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