The Lifelong Learning Plan: RRSP Withdrawals for Education

The Lifelong Learning Plan lets you take money out of your RRSP to pay for full-time education — your own, or your spouse's or common-law partner's — without paying tax on the withdrawal. You can take up to $10,000 in a calendar year and $20,000 in total, and you repay it over 10 years. It is the education twin of the Home Buyers' Plan, with its own limits and its own repayment clock.

Who qualifies

The education must be full-time, at a qualifying educational institution, for you or your spouse or common-law partner. The student must be enrolled in a qualifying program — generally a full-time program at a post-secondary institution. You cannot use the plan for your children's education: it is for you and your spouse only.

The limits

You can withdraw up to $10,000 in any one calendar year, and up to $20,000 in total for each participation period. A participation period is one stretch of study: once your Lifelong Learning Plan balance reaches zero, you can participate again starting in the year after the balance hits zero. The money must come from an RRSP you are the annuitant of. One timing trap: if you contribute to the RRSP in the 89 days before an LLP withdrawal, you may not be able to deduct that contribution — the contribution has to be in the RRSP for 90 days before you can deduct it. You also cannot open a brand-new RRSP and withdraw under the LLP immediately.

Repaying it

You must repay the full amount within 10 years, at least one-tenth of the balance each year. When repayment starts depends on the year you withdrew and whether the student is still in full-time study — the CRA's chart sets the start year for each case, so check it rather than assuming a single date. Repayments are designated on Schedule 7, are not tax-deductible, and do not use RRSP room. If you repay less than the minimum in a year, the shortfall is added to your income.

LLP vs HBP

The two plans are separate: you can use the Home Buyers' Plan for a house and the Lifelong Learning Plan for study, and the limits do not share. Both let you take RRSP money out tax-free, both require repayment on a fixed schedule, and both punish a missed repayment by adding the shortfall to your income. The difference is the purpose — a home, or an education — and the repayment period: 15 years for a home, 10 years for study.

Sources: Canada Revenue Agency, Lifelong Learning Plan.