Stranded RESP earnings / Transfer to RRSP

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riskybiz64
Posts: 9
Joined: Mon Jan 25, 2016 1:58 pm

Stranded RESP earnings / Transfer to RRSP

Post by riskybiz64 »

When we left Canada for USA over a decade ago, I withdrew all contributions and repaid CESG funds for a family RESP that had been set up for my two children. There was a small amount of RESP earnings that could not be removed from the account (about $1500) that has since grown to around $3500. Statements have been going to my parents' address and never declared with my other foreign accounts on FBAR (mostly because I forgot about it). Since neither of my kids is a Canadian resident, nor has plans to be, we can't use the funds for their benefit, and because it's a family plan, I can't change the beneficiary to my niece or nephew.

I understand that an unused RESP can be rolled tax-free into an RRSP once both kids are over 21. Is this a viable option for me as a Canadian non-resident? I've basically ignored the fact that this account existed for all this time, and don't want to open a cross-border tax can of worms for such a small amount, but if it's accessible and relatively simple to do, I'd prefer not to leave the account stranded.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Stranded RESP earnings / Transfer to RRSP

Post by nelsona »

Sure. As song as you find a brokerage that will accept "new" money into the RRSP you can do this.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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