I had quickly read a few webpages/blogs about what to know when you withdraw $ from the plan so I wouldn't look like a complete idiot.
I made DH come with me. and I do mean MADE. I didn't say "do you want to go with me?" or "would you like to go with me?"
I said, "Three people we know, our age, have either died in the past two weeks or had a stroke/heart attack. We never know when something is going to happen and if it happens to ME, you won't have a clue, so let's go"
I have to admit I was surprised when he did.
I showed up with my notebook in hand, ready to jot down the contributory and grant money set aside for each child.
My next two choices which were:
- PSE (Post-Secondary Education Payment) is a withdrawal from the contribution amount.
- EAP (Educational Assistance Payment) is a withdrawal from the Accumulated income
I told the rep I wanted to go with PSE. My reason was.....EAP style this money would have to go in DS's account BMO (and I think need his signature). Since he is in the US, it would get complicated really fast. I would have to get his permission bank - legally, and then have to do paperwork to get it OUT of his account to get it converted to US dollars etc etc
The rep wasn't sure so she phoned someone higher up in another city to double check. He told her I HAD to take it out as EAP first. It took a bit of gentle prompting for him to find in his database that I did not HAVE to. He still kept insisting it was the best way to go and I had to reiterate a couple times via my rep to the guy on the phone that my son was in the US.
Finally everyone understood and I signed the papers to get $5000 out. The processing was actually quite quick. That money was in my account 2 banking days later.
The sad part was when I converted it to US dollars. It was evil magic. $4100 just like that.
So now today I have to go get a US$ bank draft (fee to do so), and then mail it so that it gets there within a week (fee) and insured (fee).
Lots of hoops to jump through but each time I do this I am learning something new so that it becomes a little bit easier each time - or at least I feel more confident I know what I am doing, each time.
Onwards to Tax Season. Anyone have experience with a child going to college in the US, and how to claim all that on his and my income tax?
5 comments:
Can you not just do an international transfer from your bank account to his US bank account? Would be cheaper and in his account in a couple of days.
Debbie - I called to ask. He would have to do a written consent form to have money come from my Canadian account to go to his US Account. He would have to go his branch on campus, get the form, get it faxed to my Canadian bank to get me to sign it and get it back to his US bank. They told me it would then take a week to 10 business days to get that processed.
I have not had great customer service with this bank. I opened an account at the same branch as DS when I was there in August. It took the main branch of the bank 5 months (Aug 20 to Jan 14) to get my ATM card for that account into our hands.
Banks should know their products a bit better me thinks. I'm glad you stuck to your guns! It does seem so very complicated and taxes?? Oh my - good luck sorting all that out!
That is really complicated to do an international transfer! Over here in New Zealand, I just login to my internet banking, go to the international transfer page, enter in the details, hit submit - and it's done. $25 fee and in their bank in about a week.
This Canadian dollar going down is not helping me at all.
The tuition US$ bank draft in en route in its special trackable envelope and hopefully one day this week I will log on and see that DS's balance is $0.
Debbie - that sounds like how it should be. simple :-)
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