Prior to 1998, RESP-earned income was lost if the beneficiary
did not attend a post-secondary institution. Up to $50,000 of the investment
income accumulated in an RESP can now be transferred to an RESP subscriber's
RRSP (or spousal RRSP) if the recipient is a resident of Canada and the following
criteria are met:
• the RESP beneficiaries are at least age 21 and have
not yet pursued a higher education,
• the subscriber has enough RRSP contribution room,
• the RESP plan has been in existence for a minimum of 10 years.
Note: Both the age-21 and 10-year restrictions are
waived if the RESP beneficiary is mentally impaired or deceased. For more
information on transferring accumulated investment income in your RESP to
your RRSP, contact your advisor.
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