What happens to the money in an RESP if my child does not continue education after high school?

• Wait a while—your child may decide to continue studying later. RESP accounts can remain open for up to 36 years.
• Transfer the money to a brother or sister’s RESP.
• Transfer the money to a Registered Retirement Savings Plan to help you save for retirement.
• Any money from the Canada Education Savings Grant must be returned to the Government of Canada or, under certain conditions, may be used for a brother or sister’s education.
• Money from a Canada Learning Bond must be returned to the Government of Canada. The Canada Learning Bond cannot be used by another child.
• Withdraw your contribution tax-free. Your RESP Provider can give you more details, and explain any conditions that apply to your RESP plan when your child does not continue education after high school.
• When you close your RESP because your child has decided not to continue education after high school, you will have to pay taxes on the money that your investment earned while it was in the RESP. You may be able to reduce the taxes owing by transferring your Accumulated Income Payment to a Registered Retirement Savings Plan.

For more information: 

• phone the Canada Revenue Agency at 1-800-959-8281
• contact your RESP Provider
• call 1 800 O-Canada (1 800 622-6232)
• call 1 800 926-9105 if you use a TTY
• or visit a Service Canada Centre near you.