Withdraw up to $100/year from your RRSP for full-time education — $20,000 total, repaid over 10 years
The RRSP Lifelong Learning Plan (LLP) allows Canadians to withdraw funds from their RRSP to finance full-time training or education — for themselves or their spouse/common-law partner. Unlike the Home Buyers' Plan, the LLP can be used multiple times in your life as long as you repay the balance between uses. The maximum withdrawal is $100 per calendar year and $20,000 in total per LLP participation period.
The LLP is available to any Canadian RRSP holder who meets the following criteria:
The LLP is specifically for full-time enrollment. Part-time students do not qualify unless they have a disability that prevents full-time attendance.
To meet the LLP requirements, the educational institution must be:
Repayments to your RRSP must begin by the earlier of:
Each year you must repay at least 1/10 of your total LLP balance. If you do not make the required repayment, the minimum amount is added to your taxable income for that year.
| Year | Balance Remaining | Minimum Repayment | Income Inclusion if Not Repaid |
|---|---|---|---|
| Year 1 | $20,000 | $2,000 | $2,000 |
| Year 2 | $18,000 | $2,000 | $2,000 |
| Year 5 | $12,000 | $2,000 | $2,000 |
| Year 10 | $2,000 | $2,000 | $2,000 |
| Option | Cost | Tax Impact | Best For |
|---|---|---|---|
| LLP (RRSP) | Free (must repay to own RRSP) | No tax if repaid; income if not | Those with significant RRSP savings |
| TFSA Withdrawal | Free (no repayment required) | Zero — tax-free forever | Those with TFSA savings, lower income |
| Government Student Loan | Prime rate interest | Interest paid is tax deductible | Limited savings, need grants |
| Line of Credit | Prime + 1–2% | Interest not deductible | Low interest environment only |
Yes. You can participate in both the Lifelong Learning Plan and the Home Buyers' Plan simultaneously. However, the combined outstanding balances are tracked separately, and each has its own repayment schedule. Your RRSP must have sufficient funds to support both, and each repayment must be tracked separately on your tax return (Schedule 7).
You can withdraw from your own RRSP under the LLP for your spouse's education, or your spouse can withdraw from their own RRSP for their own education. However, you cannot withdraw from a Spousal RRSP under the LLP — the LLP must be administered from your own RRSP.
The LLP is particularly valuable for mid-career professionals making a significant career transition. Common uses include:
The strategy works best when you are in a low-income year during school (high tax bracket before school, low bracket during school), allowing you to potentially benefit from the contribution deduction at a high rate and the income inclusion at a lower rate.
The most tax-efficient LLP strategy:
The net benefit is the difference between the marginal rate at contribution and the rate during school years — which can be 20–30 percentage points.
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Get $100 with KOHO →Generally no. The LLP requires full-time enrollment. However, students with a disability who are enrolled at least part-time may qualify if a medical doctor certifies the disability.
The LLP balance is not immediately taxed if you drop out. Repayments simply begin at the earlier of the second year after leaving school, or ten years after your first withdrawal. You can still repay voluntarily at any time.
You can participate in the LLP multiple times, but you must fully repay a previous LLP balance before starting a new one (unless 10 years have passed since your first withdrawal in that LLP period).
No. Each person must use their own RRSP for LLP withdrawals. However, you can withdraw from your own RRSP for your spouse's full-time education.