Can You Withdraw RESP Money Early? Here’s What You Need to Know

Quick Answer

Yes, you can take money out of a Registered Education Savings Plan (RESP) before your child starts school, but the rules depend on what type of money you’re withdrawing, and any contributions withdrawn before they begin post-secondary education can trigger grant repayment. Getting it wrong could mean paying back government grants or owing unexpected taxes.

Main Takeaways

• Your RESP holds two kinds of money: your own contributions (tax-free to withdraw) and Education Assistance Payments, or EAPs (taxable and include government grants).
• You can take out your own contributions at any time without paying tax.
• EAPs — which include government grants — can only come out once your child is enrolled in a qualifying post-secondary program.
• EAPs can only be withdrawn after verification of enrollment is provided.
• Spreading EAP withdrawals across semesters can help lower your child’s tax bill.
• An RESP can stay open for up to 35 years, so there’s no rush if your child takes a gap year.

If your child has an RESP, whether it’s with Embark, who withdrew $600 million for over 120,000 withdrawals in 2025, or a different provider, it’s worth knowing your options before you make any withdrawal. This guide breaks down what’s allowed, what’s taxable, and how to avoid mistakes that could cost you government grant money.

Understanding the Two Types of RESP Money

Before you make any withdrawal, it helps to know that your RESP holds two different types of funds.

Contributions are the money you put in yourself. Because you’ve already paid tax on this money, you can withdraw it any time, tax-free, however, withdrawing for purposes other than post-secondary education can have grant implications. Make sure to check over your RESP plan terms and conditions beforehand.

Education Assistance Payments (EAPs) are a mix of government grants — like the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB) — plus any investment growth in the account. EAPs are taxable when withdrawn and counted as income in your child’s name on a T4A tax slip. Embark customers can easily access them online in their account’s student portal.

The good news? Many full-time students have little to no other income, so the tax they owe on EAPs tends to be low.

When Can You Take Out EAPs?

EAPs can only be withdrawn once your child is enrolled in a qualifying post-secondary program. The government limits how much can come out at first:

• In the first 13 weeks: Full-time students can withdraw up to $8,000. Part-time students can withdraw up to $4,000.
• After 13 consecutive weeks: Full-time students can keep withdrawing as needed, up to $29,459 annually, as long as your child remains enrolled. Part-time students can only withdraw up to $4,000 for every 13 weeks that they’re enrolled.

If there is a 12-month period where your child is not enrolled in a qualifying program for at least 13 consecutive weeks, the $8,000 cap will apply again when they re-enrol. For part-time students, similar rules apply as the $4,000 cap goes back into effect when they re-enrol.

Tip: Try to time your withdrawals with tuition payment deadlines. Spreading them out over multiple semesters, rather than taking a lump sum, can help keep your child in a lower tax bracket.

What Happens If You Withdraw Too Early?

If you take out contributions before your child is enrolled, the government grants in the account must be paid back. This includes the CESG, CLB, and any provincial grants your child received.

Common situations that can trigger a grant repayment:

• Closing the RESP without your child ever enrolling in a qualifying post-secondary program — this is a trigger for having to repay grants like the CESG and CLB.
• Taking an Accumulated Income Payment (AIP) — a withdrawal of the investment earnings in the RESP. AIPs are only available under specific conditions (the RESP must be at least 10 years old and all beneficiaries must be 21+ with no EAP eligibility), carry an additional 20% tax on top of regular income tax, and may require repayment of some grants. They are generally a last resort.

The most important rule: wait until your child’s enrollment is confirmed before requesting an EAP withdrawal. For more detail, see our guide to RESP withdrawal rules.

One more useful fact: once your child stops attending school, EAPs can still be paid out for up to six months after they leave — as long as the withdrawal would have qualified while they were enrolled, and they provide proof of enrolment that proves the student’s status immediately before they left.

How to Keep Your Tax Bill Low

EAPs count as your child’s income. Here are two simple ways to manage the tax that comes with them.

Match Withdrawals to Tuition Deadlines

Students can use tuition tax credits (T2202) to offset EAP income. If your child’s fall tuition is higher than their spring tuition, withdrawing more EAPs in the fall makes sense — the tuition credit will cover a bigger share of the taxable amount.

Spread EAPs Across Semesters

Instead of one large withdrawal, take smaller amounts each semester. This could keep your child’s annual income lower and may prevent them from moving into a higher tax bracket, especially if they also have a part-time job or scholarship income.

For a full look at RESP benefits and how to make the most of your education savings, Embark’s Learning Centre has plenty of helpful guides. If you still have questions, feel free to speak with an Education Savings Specialist.

Special Situations to Know About

Switching programs: If your child switches qualifying programs, watch your withdrawal timing for EAP eligibility purposes..

Taking a gap year: The best move is usually to leave the RESP alone. Since an RESP can stay open for up to 35 years, your child can pick up where they left off — without losing any grants.

Part-time or international students: Part-time students have lower EAP caps per 13-week period, so plan carefully. Students studying abroad may need extra documents from their school before EAPs can be processed — check with your provider ahead of time.

Before You Withdraw: A Quick Checklist

• Confirm enrollment. Check that your child is enrolled in a qualifying program and that their Social Insurance Number (SIN) is linked to the RESP.
• Decide what to withdraw. Separate your contributions (tax-free) from EAPs (taxable). Read more about what’s taxable here.
• Gather your documents. You’ll need proof of enrollment. Some providers also require a withdrawal request form. Embark customers can see examples of these documents so they know exactly what they need to submit.
• Submit early. RESP withdrawals take time to process — don’t wait until the night before tuition is due.
• Track your withdrawals. Keep a record of what was contributions and what was EAPs. This makes tax filing much easier.
• Talk to your provider. If anything is unclear, your RESP provider can walk you through the process step by step.

The Bottom Line

Withdrawing from an RESP early is possible, but timing matters. Your contributions are always available tax-free. However, if contributions are withdrawn without verification of enrolment, it will trigger a grant repayment back to the government. EAPs — which include your child’s government grants — need to wait until enrollment. With a bit of planning, you can cover your child’s education costs while keeping taxes low and grants intact.

Have questions about your RESP? The team at Embark is here to help. Contact an Embark Education Savings Specialist today. Looking to make a withdrawal from an Embark RESP for post-secondary purposes? You can start the process online in just minutes.