Ads keep this website free for you. does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Missed RESP Payments
Canadian Tax and
Financial Information

If you use an ad blocker, please consider a small contribution to help keep free for everyone.

Need an accounting, tax or financial advisor? Look in our Directory.  Use above search box to easily find your topic!   Stay Connected with!
What's New
Personal Tax
Sales Taxes
Financial Freedom
Financial Planning
Real Estate
British Columbia
Atlantic Provinces
Federal Budget
Prov/Terr Budgets
Statistics etc.
Site Map
Advertise With Us
Contact Us/About Us
Links & Resources
Registered Education Savings Plans (RESPs) -> Missed payments

What Happens if we Miss a Payment or Cancel the RESP?

Consequences of missed payments or RESP cancellation depend on the type of RESP (See What types of RESPs are available?), and the individual contract.  It is extremely important to understand the terms of the RESP contract before signing.

Possible consequences of missed payments, depending on plan:

bullet interest may be charged
bullet membership in the plan may be terminated

Consequences of cancellation of the RESP:

bullet Canada Education Savings Grants (CESGs) must be repaid
bullet subscriber contributions may be returned to the subscriber tax-free, after all fees are deducted

Further consequences of cancellation, depending on the type of plan:

bullet earnings may be forfeited
bullet earnings may be paid to the contributor as Accumulated Income Payments (AIP), with tax paid at marginal tax rates plus 20%
bullet earnings may be rolled  into the contributor's RRSP, if contribution room is available, thus avoiding the taxes
bullet for more information see How are funds paid out of the RESP, and are they taxable?.

Tip:  Make sure you understand the terms of the RESP contract before signing!

Revised: September 26, 2021

Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from

Facebook  | Twitter  |  See What’s New, stay connected with by RSS or Email
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.