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What is Lifelong Learning Plan (LLP) - Canada


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Lifelong Learning Plan is a program offered by Canadian government to help individuals finance their education and training throughout their lives.

It allows individuals to withdraw money from their Registered Retirement Savings Plan (RRSP) to fund their education or that of their spouse or common-law partner.

Unlike a regular RRSP withdrawal, LLP withdrawals are not subject to income tax, making it a cost-effective way to invest in education.


What is Eligibility Creteria for LLP?

To be eligible for the LLP, individuals must meet certain criteria:

1. Individual must be a Canadian resident.
2. Individual must have an RRSP account.
3. Individual or their spouse/common-law partner must be enrolled in a qualified educational program at a designated educational institution.


How Does LLP Work?

  • Opening an RRSP :

Open an RRSP account. Individual can contribute to RRSP throughout their working years.

  • Check Eligibility :

Individual must ensure that they and their spouse/common-law partner meets the LLP eligibility requirements.

  • Plan Your Education :

Individual have to decide on educational program they or thier partner want to pursue. LLP funds can be used for full-time or part-time studies.

  • Withdraw Funds :

Individual can withdraw up to $10,000 per year, up to a maximum of $20,000 over 2 consecutive years, from their RRSP. The funds must be repaid to their RRSP within 10 years, starting from the 5th year after their first LLP withdrawal.


What Are the Benefits of Lifelong Learning Plan (LLP):

Tax Savings :

LLP withdrawals are tax-free, so you won’t be penalized for investing in your education.

Flexible Learning :

LLP allows you to pursue education at your own pace, whether you’re returning to school after a break or enhancing your skills while working.

– If you’re looking to improve your skills change careers, or simply want to keep learning, consider the LLP as a financial option to help you reach your educational goals. Remember to consult a professional tax consultant to ensure that the LLP is the right choice for your situation, and start unlocking your future today.