Lifelong Learning Plan: Who Qualifies and What You Get
Learn how to withdraw funds from your RRSP tax-free to pay for full-time education expenses.
The Lifelong Learning Plan allows you to use your retirement savings to help pay for education costs.
Who it's for
This plan is available to individuals who hold a Registered Retirement Savings Plan (RRSP) and are pursuing full-time education.
What you get
You can withdraw up to $10,000 CAD per year from your RRSP without paying taxes on that money, provided the funds are used for educational purposes.
What it costs you
This is not a permanent withdrawal. You are required to repay the amount you took out back into your RRSP over a period of up to 10 years.
The catch to know
You must stay on top of your repayments. If you fail to repay the required annual portion, the unreturned amount will be added to your taxable income for that year, meaning you will have to pay tax on it.
How to apply
- Verify that you meet the full-time education requirements.
- Confirm your eligibility to withdraw from your RRSP under this specific plan.
- Review the repayment rules to ensure you can manage the 10-year return period.
- Consult with your financial provider regarding the specific administrative process for requesting a withdrawal.