LIFELONG LEARNING PLAN
If your Group RRSP permits withdrawals, you may be able to participate in the Lifelong Learning Plan (LLP), a program established by the federal government that allows you to withdraw amounts from your Group Registered Retirement Savings Plan (RRSP) to finance training or education for you or your spouse/common-law partner. If you qualify for the LLP you may withdraw up to $10,000 a year from your RRSP to finance a qualifying educational program for you or your spouse/common-law partner, but you can't withdraw more than $20,000 in total. However, you cannot participate in the LLP to finance your children's training or education, or the training or education of your spouse's/common-law partner's children. You can participate in the LLP more than once. Once your LLP balance is fully repaid, you can participate in the LLP again and withdraw up to $20,000 over a new qualifying period.
How do you qualify for the LLP?
- You must be a resident of Canada when you withdraw the funds for your LLP
- You must be the plan owner of the RRSP
- Participation in the LLP must be complete before the end of the year that the student reaches 71 years of age
- The student must be enrolled as a full-time student in a qualifying educational program at a designated educational institution
- A student may be enrolled part-time if he/she meets the disability conditions
- The student must enroll before March of the year after the LLP withdrawal or still be enrolled in that program in April of the year after the LLP withdrawal, unless he/she has already completed the program by then
The amounts withdrawn from your RRSP that are for the LLP do not have to be included as income and the RRSP issuer will not withhold tax on these amounts. You have to repay your withdrawal within 10 years and any amount that you don't repay when it's due will be included as income for that particular year. You can use your RRSPs for the Lifelong Learning Plan at the same time as the Home Buyers' Plan.
Contact the Blevins Team for more information.
