Not sure how to make a savings plan? Read on…
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2021 tax season primer: Our roundup of the best tax tips for Canadians + MORE Nov 21st
Doing your taxes can be a bit like building IKEA furniture. There are lots of different pieces, the instructions aren’t always clear, and it’s often feels like it could be easier just to call in the hired pros. That’s why we rounded up our favourite expert tax advice. Whether you’re going fu.... More »
The best high-interest savings accounts in Canada for 2026 + MORE Mar 11th
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Find the best and most up-to-date savings rates in Canada using the comparison tool below. Plus, use the filters to assess your estimated return based on the size of your balance.
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Asset location: Where to hold investments for tax savings + MORE Oct 17th
If you’ve ever put together an investment plan, you’re familiar with asset allocation. That’s the mix of stocks, bonds, real estate and other investments driving the expected risk and return of your portfolio. But you may have given less thought to asset location, or how those assets are distr.... More »
What to do when you have insufficient or unused RESP funds Aug 14th
Registered education savings plans (RESPs) are the best way to save for a child’s post-secondary education. Contributions attract government grants, and the accounts grow tax-deferred. Withdrawals can be used for trade school, college or university funding in Canada and abroad.
According to Sta.... More »
The best RRSP investments 2022 + MORE Jun 26th
A registered retirement savings plan (RRSP) is an investment that is registered with the Canadian federal government. RRSPs are often described as being “tax-advantaged.” That means you don’t pay income tax on the amount you are contributing to an RRSP, in the year you earn that contribution. .... More »
My three kids chose different educational paths. How do I withdraw RESP funds in a way that’s fair to them and avoids unnecessary taxes?
– moneysense.ca
Q. I have a Registered Education Savings Plan (RESP) for my three children, the youngest of whom is starting university this fall. We have made some withdrawals for the older two kids but the plan is still well-funded. Our middle child has decided to pursue a co-op university program, which is essentially self-funded. When we contributed funds to the plan, part of the funds were put aside under his name and the government added grants to that. To be fair to him (and to avoid taxes), I assume there is a minimum amount that I should withdraw as an educational assistance payment (EAP) for him. What are my next steps?
–Paul
A. Congrats on thinking ahead, Paul. And you’re correct: There is likely a minimum educational assistance payment (EAP) withdrawal you’ll want to make, which will benefit you both. That amount depends on how fully funded your RESP is.
As a reminder, the EAP is made up of the government grant (up to a maximum of $7,200) and the accumulated earnings on both your contributions and the grant itself…
–Paul
A. Congrats on thinking ahead, Paul. And you’re correct: There is likely a minimum educational assistance payment (EAP) withdrawal you’ll want to make, which will benefit you both. That amount depends on how fully funded your RESP is.
As a reminder, the EAP is made up of the government grant (up to a maximum of $7,200) and the accumulated earnings on both your contributions and the grant itself…
