Why?

In the dynamic world that we exist in today, are ability to adapt to change and modify or enhance our skills sets to meet these challenges, may be vital to our well-being. Governments have recognized that we may need to obtain formal training of a technical or vocational nature to improve or acquire skills in pursuit of enhanced occupational opportunities. Going to school costs money and requires sacrifices in both time and money.  

What?

Lifelong Learning Plan allows access to your RRSP savings without penalty of tax upon withdrawal. would be a beneficial use of this retirement money. 

You must meet all of the criteria which are as follows; 

• Be a Full-Time Student, as an exception, if you have a Disability you may be eligible as a part-time student.
• a Resident of Canada, 
• enrolled in Qualifying Educational Program, 
• at a Designated Educational Institution
• And if you’ve made a withdrawal in the previous year, you repayment period has not begun.

When?

• Enrol before March of the year after the year of the LLP withdrawal,
• Still be enrolled in that program in April of the year after the LLP withdrawal, unless the student has already completed the program by then,

How Much May I Withdraw?

• up to $10,000 in a calendar year
• up to $20,000 in total

Repayment of Withdrawn RRSP Money

Over your repayment period (generally 10 years), you have to repay to your RRSP, PRPP or SPP, the amounts you withdrew under the LLP. Any amount that you do not repay when due will be included in your income for the year it was due.

Note: The foregoing is not intended to be an exhaustive overview of the Lifelong Learning Plan. Like so much in our website It is intended to increase your awareness of products, services or programs which can assist you in your pursuit of your best financial outcomes.

See the links to Lifelong Learning Plan for a more detailed overview follow this link:

 https://www.canada.ca/…/publications/rc4112/lifelong-learning-plan.html

Still Curious?