Consolidating 3 RESP accounts into 1

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CdnAmerican
Posts: 208
Joined: Tue Aug 30, 2011 12:15 am

Consolidating 3 RESP accounts into 1

Post by CdnAmerican » Mon Nov 26, 2018 9:59 am

Hi all - I am a USC with 3 separate RESP accounts for my daughters. These each contain Cdn mutual funds. I set these up before I appreciated the US tax implications of them, but at this point I am up to date, filing separate 3520/3520A forms for each, as well as the 8621's associated with the mutual funds. I use Mark-to-Market each year, so that I am accounting for gains (or occasionally losses) each year within these accounts.

it recently hit me that I could consolidate these RESP accounts into a single account, and that I could make this account a stock/cash account, so that I did not have to mess with the 8621's.

So, I have 2 questions:
1) Would there be any tax implications to doing this? (The first year, I know I would have to file 4 3520/3520A's, as well as all the 8621's, but after that I should just have a single 3520/3520A.)
2) Would I count this as a 'distribution' on my 3520/3520A?

I've seen lots of info about RESP's on this forum, of course, but haven't come across this specific question, probably because most people just have a single RESP to start with. Thanks in advance!
Not a professional opinion.

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