Going back to school as an adult is a significant financial decision. Whether you're upgrading your credentials, pivoting to a new field, or supporting your spouse through a degree program, tuition costs can strain even a well-planned budget. The Lifelong Learning Plan (LLP) offers a practical way to use RRSP funds you've already saved — without triggering an immediate tax bill. Here is everything you need to know about the LLP in Canada for 2025.
The Lifelong Learning Plan is a federal government program that allows Canadian RRSP holders to temporarily withdraw money from their registered retirement savings to fund full-time education or training — for themselves or their spouse or common-law partner. Unlike a regular RRSP withdrawal, LLP withdrawals are not included in your income at the time of withdrawal, meaning no immediate tax hit and no withholding at source.
This makes the LLP a compelling funding tool for adult learners who have built up RRSP savings but face a gap between their education costs and other available resources such as student loans, bursaries, or employment income.
To use the LLP, either you or your spouse or common-law partner must be enrolled as a full-time student in a qualifying educational program at a designated educational institution. You must be enrolled — or have received a written offer of enrollment — before you make the withdrawal. The student must also be under 71 years of age at the start of the calendar year of withdrawal.
One important and often overlooked detail: the student does not have to be the RRSP owner making the withdrawal. If your spouse is returning to school, you can withdraw from your own RRSP under the LLP to fund their education. This gives couples considerable flexibility in structuring which registered account the funds come from.
Qualifying educational programs generally include university degrees, college diplomas, and certain vocational and technical training programs. The institution must be a designated educational institution as recognized by the Canada Revenue Agency. When in doubt, confirm with the school's registrar or consult a tax professional about whether your specific program qualifies.
The LLP has two withdrawal limits you must stay within:
You do not have to withdraw the full $10,000 in a single year. Many participants spread withdrawals across two or more calendar years until they reach the $20,000 lifetime cap. Keep in mind that the funds you intend to withdraw must have been in the RRSP for at least 90 days before the withdrawal date. Funds contributed within that 90-day window cannot be used for an LLP withdrawal, and contributing to an RRSP and immediately withdrawing under the LLP to claim a deduction does not work — the 90-day seasoning rule prevents this.
To initiate a withdrawal under the LLP, you must complete Form RC96 — Lifelong Learning Plan (LLP) Request to Withdraw Funds from an RRSP. You submit this form directly to your RRSP issuer (your bank, credit union, or investment dealer), not to the CRA.
Because LLP withdrawals are not included in income at the time of withdrawal, your RRSP issuer will not withhold any income tax on the amount. This is different from a regular RRSP withdrawal, where withholding tax applies from the first dollar. Once your issuer processes the RC96, they will release the funds to you and report the withdrawal to the CRA as an LLP amount rather than ordinary RRSP income.
You must designate each withdrawal as an LLP withdrawal using the form — you cannot retroactively reclassify a regular RRSP withdrawal as an LLP withdrawal after the fact.
The LLP is not a grant — you are expected to repay the withdrawn amounts back into your RRSP over time. Repayments begin on the earlier of two dates:
Once repayment begins, you have a 10-year repayment period. Each year, the minimum repayment is one-tenth of the total amount you withdrew under the LLP. So if you withdrew the full $20,000 lifetime maximum, your minimum annual repayment would be $2,000 per year for 10 years.
This structure mirrors the Home Buyers' Plan (HBP) repayment model. Repayments are made as RRSP contributions and designated on your tax return using Schedule 7. Importantly, repayments reduce your outstanding LLP balance — they do not generate a new RRSP deduction unless they exceed the required repayment amount and you have available RRSP contribution room.
Missing a required LLP repayment has a direct tax consequence: the missed repayment amount is added to your income for that year. This means you will owe tax on the shortfall at your marginal rate, effectively converting that portion of the LLP from a tax-deferred withdrawal into taxable income — the same outcome you were trying to avoid.
The CRA tracks your LLP balance and remaining repayments on your Notice of Assessment each year, so you can see exactly where you stand. If you fall behind, the unpaid balance does not accumulate interest, but each year's shortfall is simply added to income for that tax year. Planning repayments carefully around your post-graduation income is important, particularly in years when your earnings may fluctuate.
The LLP and the Home Buyers' Plan are separate programs with separate lifetime limits and repayment schedules. If you qualify for both — for example, you are a first-time home buyer who is also returning to school — you may use both simultaneously. Each program tracks its own balance independently.
However, both draw from the same RRSP pool. Your total RRSP balance must be sufficient to cover both sets of withdrawals, and both are subject to the 90-day seasoning rule. If your RRSP balance is limited, you will need to prioritize which program to use first or coordinate contributions and withdrawals carefully across calendar years. A tax professional at Swift Accounting Calgary can help you model which approach makes the most sense given your specific RRSP balance, contribution room, and educational timeline.
Your LLP is complete once you have either fully repaid all amounts withdrawn or included all remaining amounts in your income. At that point, any future withdrawals from your RRSP are treated as ordinary taxable withdrawals — the LLP does not provide any ongoing shelter.
However, if you later enrol in a new qualifying educational program and meet all eligibility criteria again, you may be able to initiate a new LLP. The $20,000 lifetime limit applies per participant per LLP, so a completed LLP that has been fully repaid does allow for a fresh LLP in connection with a new program. The rules around this are specific, and you should confirm eligibility with the CRA or a qualified tax advisor before assuming you qualify for a second round.
The LLP is most effective when used as part of a broader education-funding strategy. A few practical considerations:
If you have questions about eligibility, withdrawal timing, or how the LLP interacts with your overall tax situation, the team at Swift Accounting is ready to help. Contact us today to speak with a Calgary accounting professional who can walk you through your options and make sure your plan is structured correctly before you submit your first RC96.
Yes. Receiving pension income, CPP, or OAS does not disqualify you from the LLP. The key eligibility requirements are that you or your spouse must be enrolled full-time in a qualifying educational program, you must be under 71 at the start of the calendar year of withdrawal, and the RRSP funds must meet the 90-day seasoning rule. Your source of other income is not a factor in LLP eligibility.
No. An LLP withdrawal does not permanently reduce your RRSP contribution room. However, when you repay the LLP amounts back into your RRSP, those repayments are not treated as new contributions for deduction purposes — they simply reduce your outstanding LLP balance. Any repayment amounts above the required minimum can be treated as regular RRSP contributions if you have available room.
If the student drops below full-time status, you lose eligibility to make further LLP withdrawals. Additionally, the repayment clock may start sooner than anticipated — specifically, the second year after the year the student last qualified as full-time. You should reassess your repayment schedule promptly if enrolment status changes, to avoid unexpected income inclusions.
Yes, but each spouse's LLP is tracked separately. Each individual has their own $20,000 lifetime limit. If both spouses are returning to school simultaneously and both have RRSPs, each can withdraw up to $10,000 per year from their own RRSP under the LLP. One spouse cannot make an LLP withdrawal from the other spouse's RRSP in respect of their own education — the withdrawals must relate to the eligible student as defined under each RRSP holder's LLP.
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