With only days left until the start of school, parents of kids attending post-secondary education are scrambling to figure out how best to access the funds sitting in their Registered Education Savings Plans (RESPs) that they set up for the kids years ago.
An RESP is a tax-deferred savings plan that allows parents to contribute up to $50,000 per child towards saving for post-secondary education. The addition of government money in the form of Canada Education Savings Grants (CESGs) can add another $7,200 per child to the plan. Combine that with income earned and gains realized in an RESP but untaxed over the course of your kids’ childhood and you may be in the fortunate position of having a pile of cash to fund their education.
But what’s the most tax-effective way to access these funds? ... Read more from Financial Post