Lifelong Learning Plan

Learn about how the Lifelong Learning Plan can help you finance full-time training or education with your RRSP.

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 (opens in a new tab).

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 (opens in a new tab).

Note: While the LLP essentially allows you to borrow money interest-free from your own RRSP, failing to repay the withdrawn funds to your RRSP at the required repayment frequency could result in some or all of the withdrawal being considered taxable income.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 As well, RRSP contributions must be held in the RRSP for at least 90 days before they qualify to be withdrawn to participate in the LLP.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 (opens in a new tab).

Participating in the plan

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:

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.

Important to know

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 (opens in a new tab).

• 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.