What happens to an RESP if the child doesn’t go to college?
If the beneficiary of a Registered Education Savings Plan (RESP) does not attend an eligible program, you have options when closing the plan. But there may be financial costs and tax consequences. Here are four options:
- Keep the RESP open – your child may decide to continue their studies later
- Transfer the money to another beneficiary
- Transfer the money to your RRSP
- Close the RESP
Depending on what type of plan you have (individual, family or group RESP), your options may vary. Speak to your plan provider or a tax professional to learn more before you take action. Learn more about what happens if your child doesn’t continue their education.