Lesson RRSPs 201

Lifelong Learning Plan

Learn about the Lifelong Learning Plan and what it can do for you.

The Lifelong Learning Plan (LLP), a program offered by the Government of Canada, is designed to help Canadians with a Registered Retirement Savings Plan (RRSP)  finance full-time training or education for themselves, their spouse, or their common-law partners.

The program allows RRSP account holders to withdraw up to $10,000 per year (up to $20,000 in total over the participation period) out of their account tax-free, when the proceeds are used towards a full-time education at a designated educational institution. To learn more about withdrawing funds for the LLP, read about withdrawing funds from your RRSP.

Once you withdraw the funds, you have up to 10 years to pay it back. To learn more about when and how to repay your LLP withdrawal, check out repayments to your RRSP under the LLP.

Note: While the LLP essentially allows you to borrow money interest-free from your own RRSP, failing to repay the withdrawn funds to your RRSP at the required repayment frequency could result in some or all of the withdrawal being considered taxable income.

You can participate in the LLP to fund the education for you, your spouse, or your common-law partner. As well, RRSP contributions must be held in the RRSP for at least 90 days before they qualify to be withdrawn to participate in the LLP.

For more on how to qualify, read who can participate in the LLP.

If you qualify for the HBP and wish to participate in the program, we’re here to help. Please provide us with these 3 documents:

Document Instructions
Fill out the CRA’s Lifelong Learning Plan (LLP) Request to Withdraw Funds from an RRSP.
  1. Fill out the application.
  2. Mail or courier it to Questrade at this address: Questrade Inc. North American Centre 5700 Yonge Street, Unit G1 - Ground Floor North York, ON M2M 4K2 Canada
Note: Since this is a government form, we are required to have the original document on file. However, at this time, we are temporarily accepting electronic uploads of the application. If you choose to upload your application, you will also need to mail us the original copy as soon as you are able to.

To upload a document, log in to your Questrade account and go to Accounts > Account management > Upload Documents.

Questrade - Lifelong Learning Plan (LLP) RRSP Withdrawal Request
  1. Complete the form, ensuring that your instructions and details are accurate.
  2. Upload the form from your Questrade account

There are various withdrawal options on this form. Processing times will vary, depending on the withdrawal method you choose. For more information, see below under "Overall processing time."
Void cheque or direct deposit form

  1. Please ensure your name and banking details on these forms match the information on the Questrade application exactly.
  2. Upload the form from your Questrade account

Fees: While there are no withholding taxes for LLP withdrawals, the standard de-registration fee applies ($25 for partial, $50 for full).

Overall processing time: 5–10 business days from when your documents arrive at Questrade to when the LLP funds are available in your bank account. This includes:

  • Our time to process the documents (1–2 business days)
  • Number of days for the money to appear in your bank account once we have sent it to your bank. This varies, depending on the withdrawal method you use:
  • Electronic funds transfer - up to 5 business days
  • Wire transfer - 1–2 business days
  • Cheques - 10+ business days

Please allow enough time for mailed or couriered documents to arrive when planning your withdrawals.

Please note: Questrade does not provide tax or accounting advice. These materials have been prepared for your information only and are not intended to provide, and should not be relied on for, tax or accounting advice. You should consult your own tax and accounting advisors for these matters.

Here are some key things you should know about the Lifelong Learning plan:

  • You have to be a Canadian resident with an RRSP to benefit from this program.
  • LLP students meeting one of the disability conditions can participate while enrolled on a part-time basis. Learn more about these circumstances here.
  • You may participate in the plan multiple times over your life, so long as you bring your outstanding LLP balance to zero before you participate in the plan again.
  • You can participate at the same time as your spouse or common-law partners.
    • Each of you can withdraw up to $10,000 (the annual limit) and up to the total $20,000 LLP limit over the participation period.
  • Participation in the Home Buyers’ Plan (HBP) doesn’t limit you from participating in the Lifelong Learning plan, even if there are withdrawn amounts for the HBP that still need to be fully repaid.
  • Normally, you will not be allowed to withdraw funds from a locked-in RRSP or a group RRSP.
    • For more details on unlocking or withdrawing from a locked-in retirement plan (LIRA, L-RSP, etc.), please check out this article.
  • Repayments to your RRSP for LLP withdrawals are not eligible to be claimed as deductions on your income tax return.

Note: The information in this blog is for information purposes only and should not be used or construed as financial, investment, or tax advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied is made by Questrade, Inc., its affiliates or any other person to its accuracy.

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