How the Lifelong Learning Plan (LLP) works

The Lifelong Learning Plan (LLP) allows you to withdraw amounts from your RRSPs to finance full-time training or education for you or your spouse or common-law partner. You cannot participate in the LLP to finance your children’s training or education, or the training or education of your spouse’s or common-law partner’s children.

To participate in the LLP, all of the following conditions must apply:

• You must own an RRSP.
• The student must enroll on a full-time basis (or on a part-time basis if the LLP student meets the disability conditions).
• The RRSP owner has to be a resident of Canada.
• The student must enroll in a qualifying educational program at a designated educational institution.
• The participation in the Lifelong Learning Plan has to be done before the end of the year the student reaches the age of 71 years old.

You are responsible for making sure that all Lifelong Learning Plan conditions are met. If a condition is not met while you are participating in the plan, your RRSP withdrawal will not be considered eligible. You will have to include the RRSP withdrawal as income on your income tax return for the year you received the funds.

Repayments to your RRSP under the Lifelong Learning Plan

When you withdraw funds from your RRSP under the Lifelong Learning Plan, you have up to 10 years to make repayments to your RRSPs. Usually, each year you have to repay 1/10 of the total amount you withdrew until the full amount is repaid. You do not have to pay any interest on the amounts you withdrew.

A repayment is a contribution to your RRSP that you designate on Schedule 7 of your tax return as a repayment under the Lifelong Learning Plan. You can make the repayment to an existing RRSP or to a new RRSP. The RRSP issuer will give you an official receipt for the contribution. You have to send a return even if you do not owe any tax.