What is the maximum amount that can be transferred into a Registered Retirement Savings Plan (RRSP) from RESP contributions?

The maximum amount that can be transferred into a Registered Retirement Savings Plan (RRSP) from Registered Education Savings Plan (RESP) contributions is $50,000. This provision is primarily intended for individuals who have accrued RESP amounts that are not needed for their intended educational purposes and who wish to repurpose the funds for retirement savings.

The RESP is designed to help families save for a child's post-secondary education, and any accumulated income in the RESP can be transferred under specific conditions into an RRSP without incurring tax penalties at the time of transfer. The cap of $50,000 is set to ensure that the transfer remains beneficial and does not exceed reasonable limits for retirement savings.

This amount reflects a balance between encouraging savings for education and allowing some degree of flexibility for individuals who might not need the funds for education, enabling them to secure their financial future through retirement savings. This transfer mechanism allows for a smooth transition of funds while also adhering to regulatory frameworks that govern registered accounts.