RESP FAQs
- Can a plan be opened without a Social Insurance Number (SIN) for the child?
- What happens if the RESP lifetime contribution limit is exceeded?
- What happens when the Beneficiary is ready to start post-secondary education?
If you have additional questions about RESPs, please don't hesitate to call us at
1-800-281-8029, or visit any TD Canada Trust branch.
- Can a plan be opened without a Social Insurance Number (SIN) for the child?
A valid Beneficiary SIN is required in order to open the account and register the plan. Registration of the plan ensures the plan's tax-deferred status and allows for proper administration of the CESG program. Social Insurance Numbers are issued by Human Resources Development Canada (HRDC). You may obtain an application form at any Human Resources Centre in Canada or download the application from their website. Your local office is listed in the blue Government pages under "S" for Social Insurance. It takes three to six weeks to process an application. Your local TD Canada Trust branch may also have a supply.
- What happens if the RESP lifetime contribution limit is exceeded?
Should the contribution limit be exceeded, there is a CCRA penalty tax payable by the Subscriber of 1% per month on any amount in excess of the lifetime limit.
- What happens when the Beneficiary is ready to start post-secondary education?
Two types of withdrawals are completed when the Beneficiary is ready to attend a qualifying post-secondary educational institution. Firstly, the Subscriber withdraws their contributed capital tax-free and may "gift" it to the Beneficiary or retain it for him/herself. Secondly, the Beneficiary withdraws the CESG and accumulated income as an Educational Assistance Payment (EAP) which is taxable to the Beneficiary as income. (Note: certain conditions apply - see Age Restrictions under CESG Facts.)
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