Question

eortlund · Post by **eortlund** » Sun Dec 28, 2008 6:45 pm

I read a book recently about American/Canadian financial matters, and the authors said that RESP money cannot be used at an American college? Is that true? I am an American in Canada, and I don't know where my kids will go to college. We are the only family members in Canada.

I'm confused about whether an RRSP is a good idea for us to start for our kids. How large would it have to grow before there was a risk the IRS would tax it? We do our US taxes using the foreign tax credit.

eortlund · Post by **eortlund** » Sun Dec 28, 2008 6:46 pm

Sorry I meant to edit that with a new title but I can't find an edit button.

eortlund · Post by **eortlund** » Sun Dec 28, 2008 6:46 pm

Ugh, I meant RESP. Where is that edit button?

nelsona · Post by **nelsona** » Mon Dec 29, 2008 8:48 am

There is NO such rule against the funds being used in The US.

Could you tell me which book this is from?

The autor may have stated that RESPs do not enjoy the same tax status in US as in Canada, which is true.

But an RESP beneficiary is allowed to use these funds in US.