Lifelong Learning Plan in Canada

What is the Lifelong Learning Plan (LLP)?

You can withdraw money from your RRSP to help pay for training or education. You can do that for yourself, or your spouse or common-law partner, or both of you at the same time. You cannot use the LLP to pay for your children’s education.  

Is there a maximum Lifelong Learning Plan withdrawal?

Each calendar year, each taxpayer can take out up to $10,000 from one or more than one RRSP that they own. Remember that a spousal RRSP belongs to your spouse even though you contributed to it. Up to the year you turn 71, each of you can withdraw a maximum of $20,000 under the plan, meaning that a couple can withdraw a maximum of $40,000. You can keep making withdrawals up to five years after your first withdrawal. 

What are the conditions?

You have to be a full-time student registered in an admissible program in a recognized educational institution. Students with a disability can be registered part-time. Only Canadian residents can apply. Once approved, you can use the funds for whatever you want.  

Do I have to pay tax?

Only if you withdraw the money from your RRSP and you do not enroll in an admissible program or you do not make repayments within the acceptable timeframe. You have to file a tax return every year until you have reimbursed the full amount(s) you withdrew or you have included them in your income. For each amount withdrawn, you will receive a T4RSP tax slip from your RRSP issuer. On your return, you will use the Schedule 7 tax form to indicate your LLP withdrawals and repayments.  

Are there time limits?

After you make the RRSP withdrawal, you have until March of the following calendar year to enroll in an admissible program of training or education. You may be able to cancel your participation in the LLP under certain circumstances. 

What about repayments?

Since RRSPs are designed to help you save for retirement, you have to repay the money eventually. If you do not want your withdrawals to count as income, you have to start the repayments two years after the last withdrawal or five years after the first withdrawal, whichever comes first, and the amounts you withdrew must be repaid within 10 years. 

What happens if already withdrew money for the Home Buyer’s Plan?

You can still make withdrawals for the LLP, even if you have not yet repaid the money you got under the Home Buyers’ Plan.

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