Using 8891 to report RESP?

carlo · Post by **carlo** » Fri Apr 13, 2007 6:22 pm

I've just been told that one can use an 8891 to report contributions or income from an RESP account, and that a 3520 and 3520-A aren't necessary. The reason given was that since the money in the RESP could potentially be rolled over into an RRSP at a future point, then the 8891 is sufficient. Since I don't understand how to fill out a 3520, I'd be thrilled to discover if this is correct.

nelsona · Post by **nelsona** » Sat Apr 14, 2007 5:15 am

Whoever told you this was incorrect, both for the reason they gave you and due to the way IRS views RESP.

If indeed the RESP can be rolled into an RRSP (which requires a pretty narrow set od=f circumsttnces) then I would suggest that you do this, and then file 8891.

For now, continue to file 3520 -- and pay tax on the internal earnings of the RESP.

Shame on him/her.

carlo · Post by **carlo** » Sat Apr 14, 2007 1:49 pm

I feared as much. So I have to face down the 3520.

Are contributions to an RESP considered to be a "gratutious transfer" for this form (Part I, Section B)? Are undistributed earnings inside the RESP then listed under Part III?