Cardinal Point Explains RESP Withdrawal Rules for Canada–U.S. Families

New article outlines how residency, withdrawal sequencing, and differing Canadian and U.S. tax rules can affect education savings

Toronto, ON, Aug. 19, 2026 (GLOBE NEWSWIRE) -- Cardinal Point Wealth Management has published a new article examining the tax and reporting considerations that can arise when Canada–U.S. families begin withdrawing funds from a Registered Education Savings Plan (RESP).

The article, “RESP Withdrawals for Canada–U.S. Families: What Gets Taxed and When,” explains that RESP assets generally consist of subscriber contributions, government grants, and accumulated investment growth. These components are not treated the same way when withdrawn.

In Canada, subscriber contributions can generally be returned tax-free. Government grants and investment growth are normally paid as Educational Assistance Payments (EAPs) and taxed to the student beneficiary. For families with U.S. connections, however, the outcome may depend on where the subscriber and beneficiary live, their citizenship and tax status, and how the RESP has been reported historically.

A beneficiary who is no longer resident in Canada may be unable to receive certain government grant amounts. Taxable RESP payments made to a non-resident may also be subject to Canadian withholding tax. At the same time, U.S. citizens and residents connected to a RESP may face U.S. income tax and foreign account or trust-reporting requirements that do not align with the Canadian treatment.

These differences make RESP planning an important component of Canada U.S. Tax Planning. Decisions about when to withdraw funds and whether to access contributions or taxable EAPS first can materially affect the amount ultimately available for a student’s education.

The article encourages families to review the RESP before distributions begin, including the account’s composition, the beneficiary’s residency, potential Canadian withholding, and any applicable U.S. tax and reporting obligations.

Cardinal Point helps families coordinate education funding with their broader Cross-Border Financial Planning, including thorough consideration of how the Canadian and U.S. tax systems interact.

About Cardinal Point Wealth Management

Cardinal Point Wealth Management is a cross-border financial advisory firm specializing in integrated planning for individuals and families with ties to both Canada and the United States. The firm provides comprehensive wealth management services, including investment management, retirement planning, and cross-border tax strategies. With deep expertise in Canada U.S. tax planning, Canada U.S. financial planning, and guidance from an experienced Canada U.S. financial advisor, Cardinal Point helps clients navigate the complexities of living and investing across borders with clarity and confidence.

Disclaimer: This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.

Media Contact
Company Name: Cardinal Point Wealth Management, ULC
Contact Person: Kris Rossignoli, Senior Private Wealth Manager
Email: info@cardinalpointwealth.com
Country: USA
Website: www.cardinalpointwealth.com

Media Contact
Company Name: Cardinal Point Wealth Management, ULC
Contact Person: Kris Rossignoli, Senior Private Wealth Manager
Email: info@cardinalpointwealth.com
Country: USA
Website: www.cardinalpointwealth.com