The Life Long Learning Plan allows you to withdraw up to $10,000 from your RRSP tax free to finance you or your spouses’ (or common law partners’) education. The education must be provided by a designated educational institution.
The repayment period is 10 years and begins at the earlier of:
- The second year after the last year you were enrolled in full-time studies, or
- The fifth year after the first LLP withdrawal.
After you have made repayments to your RRSP for the Home Buyer’s Plan (HBP) or Lifelong Learning Plan (LLP), you must complete Schedule 7 for each tax year your made repayments. If you do not assign RRSP contributions as repayments under the LLP or HBP, the CRA will reasses your return automatically and add the minimim repayment amout to your income for the year. In addition, your RRSP contributions reduce unused RRSP deduction room carried forward from prior years if they are deducted as regular RRSP contributions.
- CRA – Lifelong Learning Plan