Please accept the terms and conditions before continuing:
[gateway-attention-terms]
[gateway-attention]
THIS SITE IS INTENDED FOR CANADIAN INSTITUTIONAL INVESTORS ONLY. IT IS NOT INTENDED FOR THE GENERAL PUBLIC OR FOR INVESTORS THAT DO NOT RESIDE IN CANADA BY ACCEPTING THIS TERMS OF USE AGREEMENT, YOU CONFIRM THAT YOU ARE ENTITLED, UNDER THE SECURITIES LEGISLATION OF YOUR PROVINCE OF RESIDENCE, TO PURCHASE SECURITIES WITHOUT THE BENEFIT OF A PROSPECTUS BECAUSE YOU ARE (I) AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF NATIONAL INSTRUMENT 45-106 PROSPECTUS AND REGISTRATION EXEMPTIONSAND/OR (II) A “PERMITTED CLIENT” WITHIN THE MEANING OF NATIONAL INSTRUMENT 31-103 REGISTRATION REQUIREMENTS, EXEMPTIONS AND ONGOING REGISTRANT OBLIGATIONS.
If you are a Canadian resident and seek information on products and services available to the general public, please visit the Franklin Templeton public website at franklintempleton.ca. If you do not reside in Canada, please visit our international websites link for assistance with products and services legally available in your place of residence.
Nothing on this Site shall be considered a solicitation to buy or an offer to sell a security, or any other product or service, to any person in any jurisdiction where such solicitation, offer, purchase or sale would be unlawful under the laws of that jurisdiction.
Please read the Terms of Use Agreement and indicate your acceptance.
Don't have an account?
Don't have an account?
There are several ways to withdraw from an RESP for non-educational purposes. Here’s a look at each type of withdrawal, including the conditions and consequences.
What if a beneficiary doesn’t attend school?
Your clients can withdraw their contributions at any time. But if they withdraw for non-educational purposes, grant money will be returned to the government.
How to withdraw: Mail or fax us a completed RESP Withdrawal Form
A non-educational withdrawal of growth is called an Accumulated Income Payment (AIP). This can only be done under the following conditions:
the plan has been registered for 10 years
and
all beneficiaries in the plan are at least 21 years old
If the above conditions are met, the subscriber can withdraw the growth in cash (minus withholding taxes and penalties*).
*The government applies the following withholding tax rate to AIP cash withdrawals:
Withdrawal Amount | % of Federal Tax Withheld |
---|---|
From $0 to $5,000 | 30% (41% in Québec) |
From $5,001 to $15,000 | 40% (50% in Québec) |
Greater than $15,000 | 50% (55% in Québec) |
How to withdraw: Mail or fax us a completed RESP Withdrawal Form
If the subscriber has RRSP contribution room—and if they meet the AIP requirements, above – they can transfer the remainder of their RESP to a retirement savings plan without withholding taxes or penalties.
How to transfer to an RRSP: Mail or fax us the following:
Tip
Rolling the growth from your clients’ RESP to their RRSP isn’t free, but it is the most tax-efficient way to remove the growth from the RESP if the beneficiary decides not to pursue post-secondary education. If your client decides to roll the growth into their RRSP they will receive two tax receipts, A T4 RESP receipt along with an RRSP contribution receipt. Your client can sign-up for secure client access and we will notify them when the receipts are available.
In a family plan, contributions, grant and growth can be used by another child. Your client can add another child to their family plan as long as the new beneficiary is 20 years old or younger. But beware: if the new beneficiary isn’t a sibling of the existing beneficiary, it may result in loss of additional grant and provincial incentives.
In an individual plan, a beneficiary can be replaced at any time. Here’s what to keep in mind to avoid over-contributions or a loss of grant:
The new beneficiary must be under 21 and a sibling of the beneficiary being replaced;
or
Both beneficiaries (old and new) must be under 21 and related to the subscriber by blood or adoption.
How to add or replace a beneficiary: Mail or fax us the following:
Signature guaranteed letter of direction signed by the subscriber(s). Please include the following information about the new beneficiary:
Application for Basic and Additional CESG & CLB if the new beneficiary is under 18
Investor Flyer – Client-friendly sales piece that explains the benefits of opening a Franklin Templeton RESP
This website is for Canadian residents.
This website is for Canadian residents.
Copyright © 2021 . Franklin Templeton Canada. All rights reserved.
Franklin Templeton Canada is a business name used by Franklin Templeton Investments Corp.