Is there any age restrictions to redeem money from an RESP?
No. 4) When can a withdrawal be made for the money earned in a RESP for non-educational purposes? The income that can be withdrawn from the plan is called an Accumulated Income Payment (AIP). AIP payments are made payable to the RESP subscriber. AIPs can only be made if all of the following conditions are met: • The RESP plan has been opened for a minimum of 10 years, • All the beneficiaries on the RESP have reached the age of 21, • None of the beneficiaries on the plan are attending school, • The subscriber is a resident of Canada. When an AIP is made, the RESP must be terminated by the end of February of the following calendar year in which the payment is made. To request the AIP redemption, the client must submit a client-signed Letter of Direction (LOD). The LOD must include a clause indicating that the beneficiary (or beneficiaries) has no intention of pursuing post-secondary studies. AIP redemptions will be taxed at the subscribers regular income tax level, plus an additional 20
