{"id":3562,"date":"2025-08-14T07:59:20","date_gmt":"2025-08-14T11:59:20","guid":{"rendered":"https:\/\/wordpress.dockhost.synology.me\/?p=3562"},"modified":"2025-08-15T01:46:45","modified_gmt":"2025-08-15T05:46:45","slug":"qualified-investments-for-resps","status":"publish","type":"post","link":"https:\/\/wordpress.dockhost.synology.me\/en_ca\/qualified-investments-for-resps\/","title":{"rendered":"Qualified Investments for RESPs"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3562\" class=\"elementor elementor-3562\">\n\t\t\t\t<div class=\"elementor-element elementor-element-75b881a e-flex e-con-boxed e-con e-parent\" data-id=\"75b881a\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-f50f088 elementor-widget elementor-widget-heading\" data-id=\"f50f088\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">What Is a Qualified Investment for an RESP?<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fe8a4b9 elementor-widget elementor-widget-text-editor\" data-id=\"fe8a4b9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Qualified Investments<\/strong> are investments permitted in Registered Education Savings Plans (RESPs).\u00a0 Common types of qualified investments for RESPs may include<sup>1<\/sup>:<\/p><ul><li><strong>Deposits and cash equivalents<\/strong> such as GICs, term deposits, and treasury bills.<\/li><li><strong>Listed securities<\/strong> including stocks, ETFs, mutual funds, and REITs traded on designated stock exchanges.<\/li><li><strong>Debt obligations<\/strong> like government bonds, investment-grade corporate bonds, and insured mortgages.<\/li><li><strong>Precious metals<\/strong> limited to specific gold and silver bullion meeting CRA\u2019s purity requirements.<\/li><li><strong>Certain annuity contracts and venture capital investments<\/strong> subject to eligibility criteria.<\/li><\/ul><p><strong>Prohibited Investments<\/strong> such as investments involving close associates (e.g., subscriber\u2019s own company) are not allowed and could trigger penalties.\u00a0 The CRA provides guidance in Income Tax Folio S30F10-C1 for maintaining the RESP&#8217;s tax-sheltered status and avoiding penalties.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-04d5025 elementor-widget elementor-widget-spacer\" data-id=\"04d5025\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a3f570b elementor-widget elementor-widget-heading\" data-id=\"a3f570b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Penalties for Non-Qualified Investments<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a104000 elementor-widget elementor-widget-text-editor\" data-id=\"a104000\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Non-Qualified Investments<\/strong> are subject to special tax<sup>2<\/sup>.\u00a0 If an RESP acquires or holds a non-qualified investment, consequences include:<\/p><ul><li>A <strong>50% tax penalty<\/strong> on the fair market value of the non-qualified asset.<\/li><li>Ongoing tax on income or gains generated from that investment while it remains non-qualified.<\/li><li>The possibility of reversing some penalties if the investment is disposed of in a timely manner or becomes re-qualified.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dcd108c elementor-widget elementor-widget-spacer\" data-id=\"dcd108c\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-40bb78d elementor-widget elementor-widget-heading\" data-id=\"40bb78d\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Promoter and Trustee Obligations<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fa42877 elementor-widget elementor-widget-text-editor\" data-id=\"fa42877\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>RESP promoters and trustees must ensure only qualified investments are held. They are responsible for monitoring, reporting, and applying due diligence to protect both investors and compliance status<sup>3<\/sup>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2d00d4e elementor-widget elementor-widget-spacer\" data-id=\"2d00d4e\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9a2cf10 elementor-widget elementor-widget-text-editor\" data-id=\"9a2cf10\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<hr \/><p><strong>Sources<\/strong><\/p><ol><li>Canada Revenue Agency. <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/technical-information\/income-tax\/income-tax-folios-index\/series-3-property-investments-savings-plans\/series-3-property-investments-savings-plan-folio-10-registered-plans-individuals\/income-tax-folio-s3-f10-c1-qualified-investments-rrsps-resps-rrifs-rdsps-tfsas.html\"><em>Income Tax Folio S3-F10-C1: Qualified Investments \u2014 RRSPs, RESPs, RRIFs, RDSPs, and TFSAs \u2013 Section: Qualified Investments<\/em>. Government of Canada<\/a>.<\/li><li>Ibid. See \u201cTax on Non-Qualified Investments.\u201d<\/li><li>Ibid. See \u201cTrustee\/Promoter Responsibilities.\u201d<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-8b55af1 e-flex e-con-boxed e-con e-parent\" data-id=\"8b55af1\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-42cde35 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"42cde35\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"\/other-considerations\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Close<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Qualified Investments are investments permitted in Registered Education Savings Plans (RESPs).  Non-Qualified Investments are subject to special tax.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-3562","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/wordpress.dockhost.synology.me\/en_ca\/wp-json\/wp\/v2\/posts\/3562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wordpress.dockhost.synology.me\/en_ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wordpress.dockhost.synology.me\/en_ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wordpress.dockhost.synology.me\/en_ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wordpress.dockhost.synology.me\/en_ca\/wp-json\/wp\/v2\/comments?post=3562"}],"version-history":[{"count":19,"href":"https:\/\/wordpress.dockhost.synology.me\/en_ca\/wp-json\/wp\/v2\/posts\/3562\/revisions"}],"predecessor-version":[{"id":3679,"href":"https:\/\/wordpress.dockhost.synology.me\/en_ca\/wp-json\/wp\/v2\/posts\/3562\/revisions\/3679"}],"wp:attachment":[{"href":"https:\/\/wordpress.dockhost.synology.me\/en_ca\/wp-json\/wp\/v2\/media?parent=3562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wordpress.dockhost.synology.me\/en_ca\/wp-json\/wp\/v2\/categories?post=3562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wordpress.dockhost.synology.me\/en_ca\/wp-json\/wp\/v2\/tags?post=3562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}