A few weeks ago I posted about my daughter’s dreams, my dreams for her and why I’ve started and RESP to save for her future. Since I wrote that post I also attended the #RESPwithRBC Twitter Party and learned a lot more about RESPs. I’d like to share a few of the things that were discussed at the party because I think they are pretty important and helpful for parents whether you have already started saving or are still thinking about it.
Can I open an RRSP before my child is born?
In order to open an RRSP your child needs a SIN number. This means you can’t actually start an account until the child is born so put “getting a SIN” number on your list of things to do early on.
What happens if my child doesn’t pursue post secondary education?
Let’s be honest, our early goals for our children may not mesh with what they eventually decide to do when they grow up. But don’t worry, you don’t lose all that money you’ve been saving. First, the plan can remain open for up to 36 years. That gives your child plenty of time to access the money if they change their mind (I sure didn’t know what I wanted to do at 17). And if they do decide for certain they do not want to pursue post secondary education you have a few options. The RESP can be transferred to another child, you can withdraw the money (any government matching portion would be returned) or you can roll it over into an RRSP.
Do I take the money all out at once or does it have to be a certain amount at a time?
The answer is either one. There is no maximum or minimum amount that can be withdrawn once your child is in school.
Can I contribute to my grand child’s RESP?
Yes you can!
If you have more questions about RESPs, RBC has the answers for you. Visit their website to learn more and/or contact an advisor.
You also have a few more days to enter to win 1 of 4 prizes of $500 from RBC to put towards your child’s RESP.