A Registered Education Savings Plan (RESP) can help a family set money aside for education after high school, including eligible CEGEP and other postsecondary programs. For Québec families, the important question is often not just how much to contribute, but whether the chosen provider handles both available education savings incentives.
The federal contribution
The basic Canada Education Savings Grant (CESG) generally adds 20% of the first $2,500 contributed in a year, or up to $500 in basic grant for that year. Additional amounts can apply based on family income. There is a $7,200 lifetime CESG maximum per beneficiary. Eligibility rules and catch-up provisions apply.
The Québec contribution
The Québec Education Savings Incentive (QESI) generally adds 10% of eligible net contributions, up to $250 in a year as its basic amount. Additional amounts and catch-up rules may apply, and the lifetime QESI maximum is $3,600 per beneficiary. QESI is paid into the RESP through a participating provider; you do not claim it yourself on your personal tax return.
For an illustrative $2,500 contribution that qualifies for both basic incentives, the federal amount could be $500 and the Québec basic amount $250. This is an example, not a guaranteed payment. The child's eligibility, contribution history, withdrawals and provider participation all matter.
Three questions before opening an RESP
- Do you apply for both the CESG and the QESI?
- What fees, investment choices and withdrawal rules apply?
- How will you confirm that each incentive has actually arrived?
Starting modestly and understanding the plan may be more useful than rushing into a contract you have not compared.
SaveFirst provides general education. Incentives depend on eligibility and current program rules; compare providers and seek advice for your circumstances.
Sources: Government of Canada — Education savings amounts; Revenu Québec — QESI amount; Revenu Québec — How QESI is requested.
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