RE:RESP knowledge anyone?no you cant buy a house with resp funds like rrsp if thats what you mean.
You can take your money out after 10 years but you will pay tax on all but your initial investment all amounts considered regular income (not cap gains) repay grants
While the subscriber’s contributions can be withdrawn tax free at any time, subject to repayment of Canada Education Savings Grants (CESGs),5 the investment earnings that have accumulated on those contributions and government incentives must wait to be withdrawn. Specifically, such amounts can be withdrawn when the RESP has been open for at least 10 years and the beneficiaries are 21 or older and not pursuing a post-secondary education. These payments are known as accumulated income payments (AIP). AIPs are taxable to the subscriber at their marginal tax rate plus an additional 20% penalty tax (for residents of Quebec, 12 per cent federal plus eight per cent provincial). When an AIP is requested, the RESP must be closed by the end of February of the following calendar year. Fortunately, there are two options for eliminating tax on AIPs:
- transfer to a registered retirement savings plan (RRSP) – A subscriber can transfer up to a lifetime maximum of $50,000 ($100,000 for joint subscribers) to their RRSP or spousal RRSP. Each individual must receive separate payments (no joint payments allowed) and each must have enough available RRSP contribution room. While the AIP is reported as taxable income, it’s fully offset when the RRSP deduction is taken in the same tax year.