How to Withdraw RESP Funds: Steps, Eligibility & Taxes

For years you’ve been saving for your child’s post-secondary education using a Registered Education Savings Plan (RESP). Now that your child is preparing to start college or university, you may be wondering how RESP withdrawals work, what documentation is required, and how those withdrawals will be taxed. The basics are straightforward, but the details matter when it comes to timing, tax treatment and avoiding penalties.

As the RESP subscriber (the person who opened and funded the plan), you’ll need to understand what promoters (the financial institutions that manage RESPs) require to release funds, which amounts are taxable, and how to plan withdrawals so you use grants and investment growth effectively.

RESP proof of enrollment: what promoters require

When you request a withdrawal, the RESP promoter will generally ask for proof that the beneficiary is enrolled in an eligible post-secondary program. Processing times vary, so submit documentation early—withdrawals are not always immediate.

Which post-secondary studies qualify?

Part-time studies in Canada: Must run at least three consecutive weeks and include at least 12 hours of instruction per month.
Full-time studies in Canada: Must last at least three consecutive weeks with at least 10 hours per week of instruction or work.
Full-time studies outside Canada: Must be at least three weeks for university programs, or 13 weeks for other programs. Part-time studies outside Canada generally do not qualify.
Eligible programs: University, college, trade school and many other post-secondary programs may qualify. Confirm the school’s status with the government’s list of designated educational institutions.

Common evidence accepted by RESP promoters includes an invoice for tuition or residence fees, an official timetable, a Proof of Enrolment (POE) letter from the registrar, an official transcript, or a Verification of Enrolment (VOE) form completed by the registrar.

Where do RESP withdrawals go and how are they taxed?

You can typically choose whether withdrawals are sent by cheque or electronically, and whether they go to you (the subscriber), the beneficiary, or directly to the post-secondary institution. Most subscribers request payments be made to themselves.

There are two distinct types of RESP withdrawals:

Post-secondary education (PSE) withdrawals: These are principal contributions you made to the RESP and are always tax-free.
Educational Assistance Payments (EAPs): EAPs represent accumulated investment income and government grant amounts. EAPs are taxable to the beneficiary, not the subscriber.

The tax character of the withdrawal—tax-free contribution or taxable EAP—does not change based on who receives the payment. When you request funds, you must specify how much of the withdrawal is allocated to contributions (PSE) and how much to EAPs.

Documentation and annual EAP limits

Generally, proof of enrollment is sufficient to make RESP withdrawals. You do not usually need to submit receipts for tuition or other education costs unless a withdrawal of EAPs exceeds the annual threshold. For 2025, that annual EAP limit is $28,881.

There are also limits that apply during the first 13 weeks of studies: for part-time studies the EAP limit is $4,000 and for full-time studies it is $8,000. After the initial 13 weeks, only the annual limit applies. If you request taxable EAPs in excess of these thresholds, your RESP promoter may ask for documentation showing education-related costs exceed the specified amounts.

Receipts and record-keeping

You do not need to keep receipts for education expenses for the purpose of withdrawing RESP funds. Canada eliminated the federal textbook tax credit in 2017, and RESP withdrawals do not require the same style of cost receipts. Keep the proof of enrollment and any documentation required only when EAP withdrawals surpass the applicable limits.

Unused EAPs and penalties: use it or face costs

If RESP funds—particularly EAPs—remain unused for too long, you may face tax consequences. Contributions (PSE withdrawals) can be withdrawn tax-free, but the government grants portion may need to be repaid if the beneficiary is no longer eligible (for example, if they don’t pursue post-secondary education). Investment income remaining in the account that is withdrawn as an Accumulated Income Payment will be taxable and subject to a 20% penalty tax; this tax is assessed to the subscriber.

To reduce the tax bite, subscribers with available RRSP contribution room can transfer up to $50,000 of accumulated income into an RRSP, subject to RRSP limits, thereby avoiding immediate taxable inclusion.

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Timing withdrawals and managing investment risk

Plan RESP withdrawals well in advance—ideally starting several years before your child finishes high school. As the beneficiary approaches post-secondary education, consider reducing investment risk in the RESP. Because RESPs are typically drawn down over a relatively short period (often within four years), sudden market declines can harm the amount available when funds are needed.

Also consider the beneficiary’s income in the year of withdrawal. EAPs are taxable to the student, and many students have low taxable income that can be sheltered by the federal basic personal amount ($16,129 for 2025) and by provincial basic personal amounts that vary across provinces. Strategically timing EAPs to make use of these non-refundable credits—along with any available tuition tax credits—can minimize overall tax paid on growth and grant amounts.

RESPs are most effective when you understand both the accumulation phase and the withdrawal rules. Knowing what documentation is required, how different portions of a withdrawal are taxed, and how to plan timing and risk will help you maximize the benefit of the savings you and the government put into the plan.

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