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ARTICLE

What’s the RRSP Lifelong Learning Plan (LLP)?




Got an RRSP? Thinking about going back to school? You can help fund your education by borrowing from your RRSP via the LLP.


Whether you want to enhance your existing credentials or embrace a new career, the Registered Retirement Savings Plan Lifelong Learning Plan (RRSP LLP) can help you pay for the education or training you need.


How does the RRSP Lifelong Learning Plan work?

The LLP lets you withdraw up to $10,000 per year to a maximum of $20,000 tax-free from your RRSP for you or your spouse to pay for a full-time program (or a part-time program, if either of you is disabled). You can’t use the program to finance your children’s post-secondary education, though — that’s the function of the registered education savings plan (RESP).


Can you combine a Lifelong Learning Plan (LLP) withdrawal with the Home Buyers’ Plan?

LLP withdrawals are also permitted if you have previously pulled money out of your RRSP under the Home Buyers’ Plan and haven’t yet fully repaid it.


If you do not have an RRSP, you cannot set one up and then withdraw from it immediately. Your contribution must be in the RRSP for 90 days before you can deduct it from the income on your tax return.

You can continue to make contributions to your RRSP and deduct them from your income on your tax return after you have made an LLP withdrawal. However, you may not be able to deduct contributions you made before the withdrawal. For further details, see the CRA rules on Effect of LLP on RRSP deductions.





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