indicatorStudents Education and RESPs

What if my child does not attend a post-secondary school?

By ATB Financial 12 March 2019 less than a minute

If your child decides not to attend​ a post-secondary school after high school, you have options when it comes to their RESP.


  • Appoint a sibling of the beneficiary, that is under 21 years of age, as a replacement beneficiary.
  • Transfer the income earned (to a maximum of $50,000) into an RRSP provided there is unused contribution room in the RRSP plan.
  • Withdraw the funds. Income earned in the RESP is subject to a 20% surcharge in addition to income tax and grant money must be returned to the government.


You can only withdraw or transfer out the income earned in the RESP if all of these conditions are met:


  • All persons named in the plan are at least 21 years old
  • You are a Canadian resident
  • You opened the RESP at least 10 years ago

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