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Nick Cardone

7150 Hawthorne Dr. Unit 104
Windsor, ON, N8T 3N3

Phone: (519) 974-6688
Toll Free: +1 866-973-4846
Fax: (519) 974-7192

Life-long Learning Plan Quick Facts

  • What is it?

    • The LLP allows individuals to withdraw money from their RRSPs to finance full-time training or post-secondary education.

  • How do I Qualify?

    • To qualify for the LLP, the student must be enrolled in a qualifying educational program at a designated educational institution. A qualifying educational program must be at least three consecutive months in length, and requires the student to spend at least ten hours per week on the courses or training. A designated educational institute is a university, college or other educational institution that qualifies for purposes of education tax credit.

  • Does the withdrawal affect RRSP contributions made in the same year?

    • You can deduct RRSP contributions made in the same year as the LLP withdrawal, on the condition they were made at least 90 days before the withdrawal.

  • How much can I withdraw?

    • You can withdraw up to $10,000 a year. The maximum total withdrawal is $20,000 over a four-year period. The three year attribution rule on withdrawals from spousal RRSPs does not apply to LLP withdrawals.

  • How is the money paid back?

    • You must repay the money to your RRSP over a 10 year period, beginning the earlier of:

  1. the fifth calendar year after the year of the first withdrawal.
  2. the second consecutive year for which the student cannot claim the education credit for at least three months.

    You have to repay at least 1/10 of the withdrawn amount each year. If you pay less, the amount you do not repay is included as income on your income tax return for that year. If you pay more, the amount you owe will be reduced, resulting in lower annual repayments in subsequent years. Each year, you will receive a statement from the Canada Customs and Revenue Agency telling you what you owe.

Mutual funds are offered through Manulife Securities Investment Services Inc. Insurance products and services are offered through Seguin Financial Group Ltd. Seguin Financial Group is a trade name used for both mutual fund & Insurance business activities. Banking products and services are offered through referral.