You contribute to a plan, we add to it, and they benefit
November 18 to 22 is Education Savings Week, which aims to inform the public about the importance of contributing to a registered education savings plan (RESP) and to highlight the various measures and government incentives available.
The Québec education savings incentive (QESI)—which took effect on February 21, 2007—encourages families to save for the post-secondary education of their children and grandchildren. You can also open or contribute to an RESP for a child who is not related to you.
How does the QESI work?
This measure consists of a refundable tax credit that is paid directly into an RESP through a provider up until the calendar year the child turns 17.
When you save with an RESP, Revenu Québec contributes an amount equal to 10% of your net annual contributions. You can receive up to $250 by contributing $2,500 per year. You can also receive an additional amount based on your family income. In addition, the federal government contributes to your RESP through programs such as the Canada Education Savings Grant and the Canada Learning Bond.
Note that you, as the RESP subscriber, have no forms to file or other procedures to go through, because it is the RESP provider that applies for the QESI on your behalf.
For more information, see Québec Education Savings Incentive.