Should you save for your retirement or child’s education first?
Global News, Brian McKechnie
Interest earned on an RESP is also not taxed until the money is withdrawn. And if an eligible student — registered with a post-secondary institution — is the one who withdraws the money, the tax falls on them, not you. Financial advisor Andrew Rice from the Toronto firm Stewart & Kett says this is what makes an RESP attractive.
‘Let’s say a student didn’t work at all. Didn’t work part-time, didn’t work in the summer and their income was under $12,000 a year, then any growth and grants under $12,000 a year would be tax-free,” he says.