How do I calculate Zakat on RESPs?

For RESP funds there is a difference of opinion since there are children involved in the equation. One school of thought makes adulthood a requirement for the liability of Zakat. However, the majority of schools of thought consider the wealth to be liable, therefore, the guardians of the Zakatable wealth should pay Zakat on the child’s behalf. 

National Zakat Foundation follows the opinion of which Zakat is payable on RESP accounts.

Please consult with your imam/scholar you follow. 

To calculate Zakat due on RESP funds you would take the total value of the RESP and deduct any penalties that would be incurred as a result of early withdrawal (on your Zakat payment date) prior to the maturity of the funds. 

Zakat on RESP = Total RESP Value minus Early Withdrawal deductions

Note: One can do an early withdrawal and withdraw their own contributions without penalty.

For example, if you have a child with an RESP fund containing $12,000 of which you contributed $10,000 and the government contributed $2,000, then you deduct the government contribution from the total (as this would be the penalty for early withdrawal prior to maturity). As a result, you would be liable to pay Zakat on the $10,000.