If You're Saving for Retirement · 🇨🇦 Canada

RRSP Lifelong Learning Plan — Borrow From Your RRSP for School Without Immediate Tax

Difficulty Medium Applies To All Provinces & Territories Last Updated 2026-04-03

RRSP Lifelong Learning Plan — Borrow From Your RRSP for School Without Immediate Tax

What Is It?

The Lifelong Learning Plan (LLP) lets you take money out of your RRSP to pay for qualifying education or training for yourself or your spouse/common-law partner without having the withdrawal taxed right away. Instead of treating the withdrawal as ordinary RRSP income in the year you take it out, CRA treats it as a temporary tax-free advance that must later be repaid to your RRSP, PRPP, or SPP.

The core advantage is timing: you can fund a career change, certification, or return to school using RRSP money now, then repay it gradually over time instead of losing a large chunk to immediate tax withholding.

How It Works

  • You can withdraw up to $10,000 per calendar year
  • Your total LLP withdrawals cannot exceed $20,000
  • CRA does not require withholding tax on a qualifying LLP withdrawal
  • You generally begin repayment in the fifth year after your first LLP withdrawal
  • The repayment period is generally 10 years

Each year during the repayment period, you must contribute at least 1/10 of your LLP balance to your RRSP, PRPP, or SPP and designate that contribution as an LLP repayment on your tax return. If you do not repay the required amount for a year, the shortfall is added to your taxable income for that year.

Do I Qualify?

  • You are an RRSP annuitant and resident in Canada when you withdraw
  • You, or your spouse/common-law partner, will be the designated student
  • The student is enrolled, or has written confirmation of enrolment before March of the following year, in a qualifying educational program
  • The student is generally enrolled on a full-time basis at a designated educational institution
  • You are not disqualified because of an earlier LLP balance or missed repayment conditions

CRA also allows some students with disabilities to qualify under different attendance rules if the program otherwise meets the statutory requirements.

How to Use It

  1. Confirm the school is a designated educational institution and the program is qualifying.
  2. Complete Form RC96, Lifelong Learning Plan (LLP) Request to Withdraw Funds from an RRSP.
  3. Submit the form to your RRSP issuer before each withdrawal.
  4. Keep proof of enrolment and withdrawal records.
  5. Track your LLP balance on your CRA notice and on Schedule 7 / related RRSP schedules when filing.
  6. During the repayment period, make RRSP/PRPP/SPP contributions and designate all or part as LLP repayments.

Who Benefits Most?

People making a mid-career change, upgrading credentials, or financing a spouse’s education when they have RRSP savings but want to avoid the immediate tax hit of a normal RRSP withdrawal.

  • Income Tax Act s.146.02 — Lifelong Learning Plan rules
  • CRA Form RC96 — Request to Withdraw Funds from an RRSP under the LLP
  • CRA LLP guidance — Defines participation conditions, repayment timing, and annual limits

What Most People Don’t Know

  • This is not an RRSP deduction on the way out. The tax benefit comes from avoiding immediate tax on the withdrawal, not from generating a new deduction at withdrawal time.
  • You can participate more than once, but not while an earlier LLP balance is still outstanding in a way that disqualifies you. A prior LLP can block a new one if repayment conditions have not been met.
  • Repayments do not create a second tax deduction. Once you designate a contribution as an LLP repayment, that amount reduces your LLP balance but does not also produce a normal RRSP deduction.
  • If you miss a repayment year, CRA does not collapse the whole plan. It simply includes that year’s required repayment amount in income.
  • This can work for mid-career retraining. The LLP is not limited to first-time students or young adults; it is useful for professionals returning to school.

Frequently Asked Questions

Do I pay withholding tax when I take money out under the LLP?


A: Not if the withdrawal qualifies under the LLP and is processed correctly through your RRSP issuer using Form RC96. A normal RRSP withdrawal would usually trigger withholding tax, but a valid LLP withdrawal does not.

Can I use the LLP for my spouse’s education instead of my own?


A: Yes. The LLP can be used for qualifying education for either you or your spouse/common-law partner, as long as the designated student and program meet the statutory conditions.

What happens if I do not repay enough in a given year?


A: The unpaid required amount for that year is added to your income for that tax year. You do not get a deduction for that amount later just because it becomes taxable now.

Can I repay more quickly than required?


A: Yes. You can designate more than the annual minimum as an LLP repayment, which reduces your remaining balance faster and shortens future required repayments.

Is this better than the Home Buyers’ Plan?


A: They solve different problems. The LLP is for qualifying education and retraining; the Home Buyers’ Plan is for home purchases. Some taxpayers use both at different points in life, but each has separate rules and repayment schedules.

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