If You're Saving for Retirement · 🇨🇦 Canada

RESP Accumulated Income Payment to RRSP — Move Excess RESP Earnings Without the 20% Penalty Tax

Difficulty Hard Applies To All Provinces & Territories Last Updated 2026-04-03

RESP Accumulated Income Payment to RRSP — Move Excess RESP Earnings Without the 20% Penalty Tax

What Is It?

In some cases, an accumulated income payment (AIP) from an RESP can be transferred to the subscriber’s RRSP, reducing or avoiding the usual punitive tax treatment.

What Most People Don’t Know

  • The rollover is conditional.
  • RESP closure timing and beneficiary facts matter.
  • This is one of the main escape valves for overfunded RESPs.

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