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Types of RESPs

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Registered Education Savings Plans (RESPs) -> RESP Types

What Types of RESPs Are Available?

Non-Family Plans

Non-family plans can have only one beneficiary.  The subscriber is not governed by a payment schedule, but can make payments as desired, up to the annual limits.  The beneficiary does not have to be related by blood or adoption to the subscriber.  These plans can be self-directed plans with a financial institution.

Family Plans

Family plans can have one or more beneficiaries, all of whom must be connected by blood or adoption to the subscriber.  The subscriber is not governed by a payment schedule, but can make payments as desired, up to the annual limits.  These plans can be self-directed plans with a financial institution.

Group Plans

Group plans are usually offered by scholarship plan dealers.  There are normally fixed payment schedules and higher fees associated with these plans.  They are often restricted to investing in low-risk securities, which historically have a lower return on investment.

Transfers of RESP Property to Another RESP

After 2010, transfers can be made without penalties and repayments if the plan receiving the transfer amount allows more than one beneficiaty at a time, or if the beneficiary of a plan receiving the transfer had not reached 21 years of age when the plan was opened.  See below for link to Canada Revenue Agency (CRA) information.

Rollover of RESP to RDSP

After 2013, RESP accumulated income payments (AIP) can be rolled over to a Registered Disability Savings Plan (RDSP).  This can be done on a tax-deferred basis by making an election in prescribed form if, at the time of the election, the RESP beneficiary is also the beneficiary under the RDSP.

For transfers from RESPs to another RESP or to RDSPs, see Canada Revenue Agency's information.

 

Revised: February 14, 2016

 

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