Getting the money out — without the expensive mistakes.
Eighteen years of saving comes down to a few withdrawal requests. Ask for the wrong type, in the wrong order, at the wrong time, and it costs your family real money — or leaves grant money stranded. Here is how it actually works.
Figures on this page are verified against the CRA guide RC4092.
Your RESP shows one balance. Inside, there are two pools.
Your own contributions come out tax-free with no limit. The government grants and all the investment growth come out as a separate, taxable payment to the student — capped at $8,000 in the first 13 weeks of full-time study.
Nearly every costly withdrawal mistake starts here: a parent asks their provider for “$15,000” and gets refused, or takes the wrong pool first and strands grant money that later goes back to Ottawa. You have to tell your provider which pool you’re drawing from.
PSE — your contributions
The money you put in. It was never deducted, so it is never taxed coming out.
- No dollar limit, at any point
- Paid to you or the student, your choice
- Still requires the student to be enrolled
- Always yours — nothing to forfeit
EAP — grants + growth
CESG, the Canada Learning Bond, provincial grants, and every dollar the plan earned.
- $8,000 cap in the first 13 consecutive weeks (full-time)
- $4,000 per 13-week period for part-time study
- No limit after the first 13 weeks, while qualifying
- Unused grants are repaid to the government
- Reported to the student on a T4A slip and taxable in their hands, not yours
Withdrawal order at a glance
Both types come out of the same RESP balance. Which one you name decides who pays the tax and how much can leave the plan in the first 13 weeks.
| Question | PSE withdrawal — your own contributions | EAP — grants plus growth |
|---|---|---|
| What it is | Your own money coming back out of the plan. | A separate, taxable payment to the student. |
| Whose money | Yours — the money you put in. | CESG, the Canada Learning Bond, provincial grants, and every dollar the plan earned. |
| Tax treatment | Not taxed. It was never deducted, so it is never taxed coming out. | Taxed in the student’s hands. |
| The first-13-weeks cap | No cap — no dollar limit, at any point. | $8,000 full-time in the first 13 consecutive weeks; $4,000 per 13-week period for part-time study. No limit after the first 13 weeks, while the student qualifies. |
| Proof needed | The student still has to be enrolled. | Official confirmation of enrolment from the institution — student name, program, and that it qualifies. |
| When to prefer which | Later, or alongside an EAP. Contributions are yours forever and always tax-free. | Usually first. Grants and growth can only leave as EAPs while the student qualifies, and front-loading while the student’s income is low is the common approach. |
Before the first semester
- Get proof of enrolment the week it is confirmed — your provider cannot release an EAP without official confirmation from the institution.
- Decide the split before you call — providers process exactly what you ask for, and some will not let you change it afterwards.
- Usually take EAP money first — grants and growth can only leave as EAPs while the student qualifies.
- Mind the 13-week clock — the cap applies to EAPs only, and it comes back for the next stretch after a year away from study.
- Keep the receipts — EAPs must fund education-related expenses such as tuition, books, equipment, housing and transport.
What can you actually take out in September?
Enter the first semester’s costs and what’s in the plan. This shows how much can come from each pool inside the rules — and flags a shortfall before you’re standing at the registrar’s office.
Runs entirely in your browser — we don’t store or see your numbers. It applies the CRA first-13-week EAP limits ($8,000 full-time in a qualifying program, $4,000 per 13-week period part-time) and assumes the student is enrolled and eligible with proof of enrolment accepted by your promoter. It does not calculate the student’s tax, which depends on their total income and credits, and it doesn’t reflect your plan’s own terms or any provider minimums. Educational information only — confirm amounts with your RESP promoter and the CRA.
How a first withdrawal actually goes.
Get proof of enrolment the week it’s confirmed
Your provider cannot release an EAP without official confirmation from the institution — student name, program, and that it qualifies. This is the step families leave until tuition is due, and it is the one that causes the panic.
Decide the split before you call
Work out how much you want from grants and growth (EAP) versus your own contributions (PSE). Providers process exactly what you ask for — they don’t optimise it for you, and some won’t let you change it afterwards.
Usually take EAP money first
Grants and growth can only leave as EAPs while the student qualifies. Contributions are yours forever and always tax-free. Front-loading the EAP while the student’s income is low is the common approach — tuition credits and the basic personal amount often absorb most of it.
Mind the 13-week clock
The first-13-week cap applies to EAPs only. Once those weeks are complete and the student stays enrolled, the limit disappears. Take a year away from study, though, and the cap comes back for the next stretch.
Keep the receipts
EAPs must fund education-related expenses — tuition, books, equipment, housing, transport. CRA sets an indexed annual amount above which promoters are expected to look at reasonableness, so larger requests should be supportable with documentation.
The mistake that costs the most
Leaving grant money in the plan when school ends. Grants and growth can only come out as EAPs, and only while the beneficiary qualifies. Finish school with the EAP pool untouched and the government grants are repaid to Ottawa — money you spent eighteen years collecting.
There is a six-month grace window after enrolment ends when EAPs can still be paid, if the plan allows it. Beyond that, the options narrow considerably.
One call before the first withdrawal
The order you pull EAP, grants, and contributions decides how much tax your child pays and how much grant you keep. Get it wrong once and it’s expensive. Let’s map it first.
Plan my withdrawals →RESP withdrawal questions parents ask
What are the two types of RESP withdrawal?
How much can I withdraw in the first 13 weeks?
What if the first semester costs more than $8,000?
Which should I take out first — grants or contributions?
What proof does my RESP provider need?
Can we still withdraw after my child finishes school?
What happens if my child doesn’t go to post-secondary at all?
One call before the first request.
Free and no-pressure: what’s in each pool, what to ask your provider for, the order that fits your student’s income — and whether any grant money is at risk of going back. Fifteen minutes now beats a year of undoing it.
Before requesting anything, it is worth confirming the programme actually qualifies — trade school, an apprenticeship and part-time study all can, on tests set out in what an RESP can pay for.
Harpreet Singh · LLQP-Licensed · Life Insurance & Segregated Funds · Ontario · Proudly Canadian. This page is general information only — not financial, investment, insurance, or tax advice. RESP withdrawal rules, EAP limits, eligibility, proof-of-enrolment requirements, and the tax treatment of payments are set by the Government of Canada and administered by the Canada Revenue Agency and your RESP promoter, and may change; figures reflect CRA guidance current at the time of writing and should be confirmed at canada.ca. Individual plan terms, promoter procedures, minimums, and processing times vary and may be more restrictive than the federal limits. Tax outcomes depend on the student’s total income and available credits. The calculator is an educational illustration, not a withdrawal instruction or a projection. Speak with a qualified advisor and your RESP promoter about your own situation.
Harpreet is an LLQP-licensed insurance advisor based in Ontario, Canada. He helps families understand RESPs in plain language, claim every government grant they qualify for, and protect the plan with the right coverage — with straight answers and no pressure. More about Harpreet →