As end of year RESP planning crunch time looms, this is the time to think strategically about withdrawals or contributions

Garry Marr explains that while having a well-funded RESP is a fortunate problem, it creates tax-planning challenges when children earn significant income through co-op jobs or internships. With strong market gains and year-end deadlines for maximizing government grants, families must carefully balance contributions and withdrawals to avoid higher tax burdens, though the “worst case” is simply paying a bit more tax because both investments and kids are doing well.

Source: Financial Post

About the Canadian Scholarship Trust Foundation

Founded in 1960, the Canadian Scholarship Trust Foundation is dedicated to improving access to post-secondary education to foster a more resilient and inclusive country for generations to come. For more than 60 years, CST has helped almost 700,000 Canadian families set their children up for success through post-secondary education. As the creators of education savings plans in Canada, CST has also awarded over $3 million to students pursuing post-secondary education through its scholarship and bursary programs. For more Information, please visit www.cst.org.