Question: Reggie wants to set up an RESP for his two baby grandsons. He has some misconceptions about RESPs. Which of the following statements is TRUE? Question options: If neither of Reggie's grandsons pursue post-secondary education, Reggie will have the option of transferring the accumulated CESGs from the RESP into Reggie's RRSP as a deductible contribution to a maximum of $7,200 per beneficiary. Reggie has to set up an individual plan for each grandchild because an RESP cannot have two beneficiaries. In the worst case scenario, if neither of Reggie's grandsons pursue post-secondary education, Reggie can withdraw his principal contributions without penalty. However, Reggie will have to repay the CESGs paid into the plan back to the government and the accumulated income will be subject to a 20% penalty in addition to being taxed at Reggie's marginal tax rate. If Reggie withdraws his capital from the plan, he will be fully taxed on the amount of the withdrawal.