Quote:
Originally Posted by IamNotKenKing
Pardon my ignorance, but how do you get 20% grant money by contributing to an RRSP? Or are you suggesting withdrawing an RESP, returning the 20% grant money, and then investing it in an RRSP?
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Yes, the post was what to do if you have money left in the RESP if your kids aren’t going to school.
If you transfer the money from an RESP to an RRSP you have to repay the government grant but over the 20 years you had the RESP all of the earnings on the government grant money are yours to keep.
If you just withdraw the money there is a 20% tax penalty on your earnings which roughly offsets the money your earned on the grant.