Lifelong Learning Plan (LLP)

The Lifelong Learning Plan (LLP) lets you withdraw up to $20,000 from your RRSP to fund full-time education or training for you or your spouse. You can take out up to $10,000 per year, and like the Home Buyers’ Plan, it’s a tax-free withdrawal that you pay back over time.

Repayments happen over 10 years, starting five years after your first withdrawal or two years after you finish the program, whichever comes first.

Why it matters

The LLP is designed for people going back to school, whether that’s a career change, a new degree, or a professional certification. It can be a way to fund education without taking on student debt, using money you’ve already saved.

But there are some important requirements. The program you’re attending must be full-time (at least three consecutive months), and you or your spouse must be enrolled at an eligible institution. Part-time programs generally don’t qualify, and informal courses or self-directed study won’t work either.

Like the HBP, the money you withdraw loses its tax-sheltered growth while it’s out of your RRSP. And if you miss a repayment, that amount gets added to your taxable income for the year.

Example

You withdraw $10,000 per year for two years, pulling $20,000 total from your RRSP. Your repayment period is 10 years, so you need to put back $2,000 per year. If you only repay $1,200 one year, the remaining $800 gets added to your taxable income, and you’ll owe tax on it.

The LLP is less well-known than the Home Buyers’ Plan, but it’s worth knowing about. If you’re considering going back to school and you have money sitting in an RRSP, it’s worth looking into. Just make sure you understand the repayment schedule before you withdraw, so you don’t end up with a surprise tax bill.