US Reporting of withdrawal from CDN RESP

MillerNuck · Post by **MillerNuck** » Sat Jan 28, 2012 2:36 pm

Moved from Canada to the US 7 Yrs ago. Froze (Stopped contributing to) my sons RESP's at that time. We are all on US Green cards now.
I previously nominated and reported all CDN RRSP's & RESP's.

In 2011 I withdrew the Principal only from one RESP (all of $4000)

1. How do I (or my son) report that? Do I just complete the foreign accounts reporting (TDF 90-22.1) and show a different balance?

2. IN 2012 I plan to withdraw interest from the RESP as well (will liquidate the acocunt in entirety in one pass) and I suspect this is now deemed income, and I must report differently.

Thanks for your insight.

nelsona · Post by **nelsona** » Sat Jan 28, 2012 3:21 pm

I'm not sure what you mean by "nominating" RESPs, since they have no special status in US, and thus internal income is taxable year over year.

Since you would havebeen paying tax all along, there is nothe special to report when you take money out.

RESPs are NOT treated like RRSPs.

I would be reporting all interst now on teis years return, since you took a withdrawl that was more than the internal gain.