Fiscal and Financial Planning Guide 2024-2025

Students > Lifelong Learning Plan (LLP)

The LLP was introduced in 1999 when the economy was in recession and many workers were losing their jobs, often with little hope of finding one in the same industry.

The purpose of LLP is to allow tax-free withdrawals from the registered retirement savings plan (RRSP) in order to fund full-time education to acquire new knowledge and allow for a career realignment or further specialization.

Eligible Education Programs

Eligible post-secondary programs must be for a minimum of 3 cumulative months, during which the student must devote at least 10 hours per week.

Programs offered for the following institutions are generally eligible:

  • University;
  • CEGEP;
  • College offering a Diploma of Vocational Studies (DVS)

For the purpose of the LLP, Medical Residents are considered to be in an eligible training program and may use this strategy.

How the plan works

The LLP works in a similar way to the Home Buyer’s Plan (HBP), and some call it the “Education HBP”.

Withdrawals

The LLP allows to withdraw tax-free $10,000 annually from the RRSP with a maximum cumulative amount of $20,000 over 5 years.

For a couple, it is possible to withdraw up to $40,000 from the RRSP, or $20,000 from each spouse’s RRSP, to finance the education of one spouse.

Repayments to RRSP

Refunds to the RRSP must begin no later than:

  • 2 years after returning to school
  • 5 years after 1st withdrawal

Repayments must be made over 10 years in 10 equal payments.

Special cases

The balance of the LLP must be fully repaid at age 71 or if the person ceases to be a resident of Canada.

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