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Tax-wise, there’s no difference, since the RESP isn’t tax deductible. The RESP still has an interesting advantage: the contributions you make into it grow tax free. Once you’re ready to withdraw the money for your beneficiary’s education, you can choose which withdrawal strategy you want to use for the invested capital, i.e., the contributions that were made into the RESP, and for the Educational Assistance Payments (EAPs), which are made up of the government grants as well as the accumulated income on your savings and grants.
As the subscriber, you get back your contributions tax free. However, your beneficiary will be taxed on the EAP amounts received. In most cases, the financial impact is minor since students usually benefit from a lower tax rate given their financial situation.
When the time comes, Kaleido will be there to help you choose the best withdrawal strategy for you and your beneficiary.