Canada Education Savings Regulations (SOR/2005-151)

5 (1) For the purposes of paragraph 5(3)(b) of the Act and paragraph 4(1)(f) of these Regulations, if contributions that were made to an RESP before 1998 are withdrawn from the RESP after February 23, 1998, any individual who is a beneficiary of the RESP at any time during the period beginning on February 24, 1998 and ending on the day of the withdrawal is an ineligible beneficiary throughout the period that begins on the day of the withdrawal and ends on the last day of the second year following the year in which the withdrawal is made.

(2) Subsection (1) does not apply if

• (a) the total of all withdrawals made under the RESP for the year does not exceed $200;

• (b) the withdrawal is made at a time when at least one beneficiary under the RESP is eligible to receive an EAP under the RESP;

• (c) the withdrawal is an eligible transfer; or

• (d) the withdrawal is all or part of an excess amount of contributions to reduce the amount of tax, otherwise payable under Part X.4 of the Income Tax Act, and, at the time of the withdrawal, the excess amount for the year is not greater than $4,000.