A major change to your Fonds savings as of 2024

In its 2023–2024 budget, the Québec government has introduced a measure that could affect your eligibility for the 30% tax credit for a labour-sponsored fund in 2024. This measure is designed to ensure that workers with greater savings needs can aspire to a decent retirement.

Change #1: Savers whose taxable income exceeded $112,655 in 2022 will no longer be eligible for the 30% tax credit for a labour-sponsored fund in 2024.[1]


To qualify for the 30% tax credit in 2024, your taxable income in 2022 must be $112,655 or less.[1] Taxable income is line 299 of your Québec income tax return.

Two tax years in advance

To help you plan ahead, your eligibility is determined two tax years in advance (e.g., in 2022 for 2024).

Taxable income threshold

The taxable income threshold will change every year. For your 2025 contributions, the 2023 threshold will increase from $112,655 to $119,910.[1]

Federal and provincial

If your taxable income exceeds the prescribed threshold, you won't be eligible for any labour-sponsored fund tax credits for that tax year, either federally (15%) or provincially (15%).[1]

Use this step-by-step guide in our FAQ section to help determine whether you're eligible for tax credits.

Important note

Don't get caught unawares. If you're no longer eligible for the labour-sponsored fund tax credit and continue to make RRSP+ or non-RRSP+ contributions via payroll deduction, it's your responsibility to ask your employer's payroll department to halt immediate tax deductions (in other words, to ensure you stop receiving the 30% tax credit directly on your paycheque).

Three concrete examples

Deductions that reduce your taxable income

Your employment income is $120,000 per year. Thanks to your $10,000 in RRSP contributions and other worker deductions, your taxable income on line 299 is $105,000. That means you're eligible to receive the labour-sponsored fund tax credit for the 2024 tax year!

Sources of income outside your salary

Your employment income is $90,000. However, due to the rental income from your second home, your taxable income on line 299 is $118,000. Unfortunately, that makes you ineligible to receive the tax credit for the 2024 tax year.[1]

Maximize contributions in the first 60 days of the year

Your taxable income on line 299 exceeds the maximum and you find that you will no longer have access to the credits in 2024.[1] You are still able to keep your contributions for the months of January and February (first 60 days of the year) and claim all tax credits on your 2023 tax return.

What to do if you no longer qualify for the labour-sponsored fund tax credit

Can I continue to contribute to my RRSP+ with the Fonds?

If your annual salary is higher than the prescribed taxable income threshold, you'll still be able to make contributions, but you won't receive the labour-sponsored fund tax credit. Depending on your tax situation, you may still benefit from standard RRSP deductions.

What will happen to my existing savings?

Rest assured that the savings you've already accumulated will continue to grow in your RRSP+ to help you reach your retirement goals.

What are my other options within the Fonds family?

If you'd like to continue investing your savings in the local economy while enjoying maximum flexibility, consider FlexiFonds mutual funds,[2] in which 70% of assets are tied to Québec businesses. Keep in mind, however, that the tax credit for a labour-sponsored fund does not apply to FlexiFonds products.

FlexiFonds mutual fund advisors put their expertise and competence at your disposal, with no pressure and no commission. They will be happy to assist you if you are affected by this change.

  • 1

    Subject to approval by the competent authorities of the Quebec government and the federal government.

    The Fonds de solidarité FTQ's shareholders will receive 15% in tax credits from the Québec government and 15% from the federal government. They are capped at $1,500 per fiscal year, which represents a $5,000 purchase of shares of the Fonds de solidarité FTQ.

    Please read the prospectus before buying Fonds de solidarité FTQ shares. Copies of the prospectus may be obtained on the Website fondsftq.com, from a local representative or at the offices of the Fonds de solidarité FTQ. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all dividends and do not take into account income taxes payable by any security holder that would have reduced returns. The shares of the Fonds de solidarité FTQ are not guaranteed, their value changes and past performance may not be repeated.


    FlexiFonds de solidarité FTQ Inc.
    The units of the FlexiFonds funds are distributed solely in Québec by FlexiFonds de solidarité FTQ inc., a mutual fund dealer wholly owned by the Fonds de solidarité FTQ. FlexiFonds de solidarité FTQ inc. does not distribute the units of any other mutual funds. Management fees and other expenses may be associated with mutual fund investments. Please consult your advisor and read the prospectus and the fund facts documents before making an investment. The units of the FlexiFonds funds are not covered by the Canada Deposit Insurance Corporation nor any other government deposit insurer. The FlexiFonds funds are not guaranteed, their values change frequently, and past performance may not be repeated.