As my regular readers know I have been spending a while attempting to figure out the new RESP Rules put in place for RESP withdrawals (I have two daughters attending University and wish to withdraw money from their RESPs).
I am dealing with TD Mutual Funds (so please keep this in mind, this is not a generic rant about RESPs in general, they may work well with other firms, I can only comment on what I am currently dealing with) for these RESPs. I think in the end this was a mistake on my part, I should have moved these funds over to a Self-Directed RESP offered by TD Waterhouse because:
- TD Mutual Funds are really an adjunct of TD the bank and have a lot of overhead dealing with them (as you will read).
- There are TD Index Funds that are not available (or are made as unavailable as possible) when you deal with TD Mutual Funds directly (the E-Series Index funds in specific, which are easily purchasable if you have a TD Waterhouse account (or in fact any normal trading account)). You must fill in forms to be able to trade those funds in your Mutual Funds account (more RESP Rules).
This is not what I am writing about today, I include this simply to be complete in my discussions.
As I have outlined in previous RESP posts in the past week or two:
- RESP Wrinkles new rules have appeared for withdrawls.
- RESP Money to Get Money these new rules have created another income stream for some Universities
- RESP Switcheroo however some schools have not taken advantage of this opportunity.
- RESP Redux however rules are not always well understood
- TD E-Series Bear Trap shows that TD has its own rules that can trip you up.
Where I stand now is that the Branch Manager was in fact mistaken, and the only way I can withdraw money from a TD Mutual Funds RESP is to make an appointment with someone at the Branch with a Mutual Fund License (?!?) and I can then complete my transaction (he does not know the RESP Rules).
So I end up where I started, which is I can only get at the funds if I go into my branch.
For those of you who have not read any of my diatribes about Free Banking, this is the kind of thing that makes me think that maybe I need to change banks again, or at least put together a plan on why I might do that, and then share it with the lucky person at the local branch who I must talk to about RESPs and withdrawals. I think that is what I might be doing, very soon.