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What is the Lifelong Learning Plan (LLP)?

The Lifelong Learning Plan (LLP) is a federal program that allows you to make a tax-free withdrawal of money from your RRSP for the purpose of enrolling yourself (or your spouse or common-law partner) in a qualified educational program at a designated educational institution on a full-time basis. (Disabled applicants may enroll as part-time students.) The caveat is that this money must be paid back to your RRSP over a period of not more than 10 years.

The LLP allows you to withdraw up to $10,000 in one calendar year and up to $20,000 in total. Withdrawals are made by completing government form RC96 and giving it to your RRSP issuer, who will then remit the funds without withholding tax. You will be issued a T4RSP slip, which will need to be attached to your income tax return.

There are specific restrictions as to the timing of the withdrawal in relation to when you enroll in the educational program. More details can be found by visiting Canada Customs and Revenue Agency’s web site at www.ccra-adrc.gc.ca and clicking on LLP.