The
Lifelong Learning Plan (LLP)
allows you to withdraw amounts from your RRSPs to finance training
or education for you or your spouse or common-law partner. You
cannot use the RRSP funds to finance a child's education, such as
your child or the child of your spouse or common-law partner.
You can withdraw up to $10,000
in a calendar year from your RRSPs. This is your annual
Lifelong Learning Plan limit. Your
spouse or common-law partner can also withdraw up to $10,000 in the
same year you
do. You can both participate in the LLP for one of you or you can
participate in the LLP for each other. You cannot withdraw more than $20,000 each time
you participate in the Lifelong Learning
Plan . This is your total
Lifelong Learning Plan limit. You can participate
in the Lifelong Learning Plan again,
starting the year after you bring your
Lifelong Learning Plan balance to zero. There is no
limit on the number of times you can participate in the plan over
your lifetime. You can participate in the
Lifelong Learning Plan even if you have withdrawn
amounts from your RRSP under the Home Buyers' Plan that have not
been fully repaid.
You have to meet all following
conditions for participating in the
Lifelong Learning Plan when you make a withdrawal
from your RRSP:
-
You must be a full-time
student (or a part-time student if he or she meets the
disability conditions).
-
You have to be a resident
of Canada.
-
You have to enroll in a
qualifying educational program at a designated educational
institution. (The program must last three consecutive months or
more; and require a student to spend 10 hours or more per week
on courses or work in the program.)
-
The participation in the
Lifelong Learning Plan has
to be done before the end of the year you reach the age of 71.
If all conditions are met
while you are participating in the plan, the withdrawals will not
have to be included in your taxable income, and the RRSP issuer will
not withhold tax on these amounts. If you have an RRSP and you
withdraw funds within 89 days of your contribution, you may not be
able to deduct the full contribution from your income.
You and your RRSP
issuer have to fill out Form RC96, Lifelong Learning Plan (LLP) –
Request to Withdraw Funds From an RRSP, for each RRSP
withdrawal. Your RRSP issuer will not withhold tax from the funds
you withdraw if you meet the
Lifelong Learning Plan
conditions
Your RRSP issuer will send you a T4RSP, Statement of RRSP Income,
showing the amount you withdrew under the
Lifelong Learning Plan
.
You have to attach the T4RSP slips to your Return.
You have up to 10
years to repay the RRSPs. Generally, in each year of your repayment
period, you have to repay 1/10th of your original
Lifelong Learning Plan
balance until
the full amount is repaid. The start date for the repayments depends
on the status of the student. Canada Customs and Revenue Agency
determines when your repayment period starts by checking the
student's Return to see if the student was entitled to the education
amount as a full-time student for at least three months. If the
student does not meet this education amount condition two years in a
row, the repayment period usually starts in the second of those two
years. If the student continues to meet this condition every year,
your repayment period starts in the fifth year after your first RRSP
withdrawal.
You will receive an
Lifelong Learning Plan Statement
of Account each year on your Notice of Assessment or Notice of
Reassessment. This statement will show the total LLP
withdrawals, the amount you have repaid to date, your
Lifelong Learning Plan balance, and
the amount you have to repay the following year. 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. If you contribute
an amount that is less than the amount you have to repay this year,
you have to include the difference in your taxable income in your
Return.
You can cancel your
participation in the
Lifelong Learning Plan
by paying
the withdrawal back to your RRSPs, only if one of the following
situations applies:
-
The student was not
enrolled in the qualifying educational program when you made the
withdrawal, and does not enroll in time
-
The student left the
program before April of the year after the withdrawal and 75% or
more of the tuition was refundable
When you make the
cancellation of payment to your RRSP, your RRSP issuer will give you
a receipt. Any amount that you do not repay will be included in your
income for the year you withdrew it.
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