Lifelong Learning Plan (LLP)

Includes Form RC96

RC4112(E) Rev. 16

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La version française de ce guide est intitulée Régime d’encouragement à l’éducation permanente (REEP).

What's new for 2016

For tax year after 2016, a definition of qualifying student has been added in the guide and the requirement for the repayment period has been amended.

Table of contents

• What is new for 2016
• Is this guide for you?
• Definitions
• Chapter 1 – Participating in the LLP
  • Who can participate in the LLP?
  • What conditions does the LLP student have to meet?
  • How much can you withdraw?
  • When can you make LLP withdrawals?
  • How to make an LLP withdrawal
  • How the withdrawal from your RRSP affects your RRSP / PRPP deduction
  • What happens if the LLP student leaves the educational program?
  • Can an LLP withdrawal be cancelled
  • How to cancel your LLP withdrawal
  • Questions you may have
• Chapter 2 – Repaying your withdrawals
  • When and how much to repay
  • How to make your repayments
  • Contributions you cannot designate
  • Situations when the repayments have to be made in less than 10 years
• Appendix – Effect of LLP on RRSP deductions
• Form RC96 – Lifelong Learning Plan (LLP) Request to withdraw funds from an RRSP
• Online services
  • My Account
  • MyCRA - Mobile app
  • Electronic payments
• For more information
  • What if you need help?
  • Forms and publications
  • Tax Information Phone Service (TIPS)
  • Teletypewriter (TTY) users
  • Service complaints
  • Reprisal complaint
  • Tax information videos

Is this guide for you?

Use this guide if you want information about participating in the Lifelong Learning Plan (LLP).

The LLP allows you to withdraw amounts from your registered retirement savings plans (RRSPs) to finance training or education for you or your spouse or common-law partner. You do not have to include the withdrawn amounts in your income, and the RRSP issuer will not withhold tax on these amounts.

Over your repayment period (generally 10 years), you have to repay to your RRSP or PRPP or both the amounts you withdrew under the LLP. Any amount that you do not repay when due will be included in your income for the year it was due.

The definitions section gives general explanations of the terms we use. Chapter 1 gives information on how the LLP works. Chapter 2 explains how to repay withdrawals under the LLP.

Definitions

These definitions provide a general explanation of the terms that we use in this guide.

Annuitant – generally, an annuitant of an RRSP is the person for whom the plan provides a retirement income.

Common-law partner – a person who is not your spouse (see the definition of spouse), with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:

1. has been living with you in a conjugal relationship and this current relationship has lasted at least 12 continuous months;
2. is the parent of your child by birth or adoption; or
3. has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.

LLP balance – your LLP balance, at any time, is the total of all eligible amounts you have withdrawn from your RRSPs under the LLP, minus the total of all amounts you have repaid to your RRSP or PRPP or both or included in your income.

LLP student – this is the individual whose education you are financing under the LLP. It can be you or your spouse or common-law partner, but not your child or the child of your spouse or common-law partner. You have to participate in the LLP for the same LLP student each year until the year after you have reduced your LLP balance to zero.

LLP withdrawal – this is an amount you withdraw from your RRSPs under the LLP.

Participation period – your LLP participation period starts on January 1 of the year you make an eligible withdrawal from your RRSP and ends in the year your LLP balance is zero.

Pooled registered pension plan (PRPP) – a retirement savings plan to which you or your employer or both can contribute. Any income earned in the PRPP is usually exempt from tax as long as it remains in the plan.

Qualifying student – for the purposes of the LLP, for a month in a taxation year after 2016 means an individual who in the month is enrolled in a qualifying educational program as a full-time student at a designated educational institution, and if requested by the Minister has provided proof of enrolment by filing a certificate in prescribed form issued by the designated educational institution and containing prescribed information. If the individual is enrolled at an educational institution certified by the Minister of Employment and Social Development, the individual is 16 years of age before the end of the year and is enrolled in the program to obtain skills for, or improved the individual’s skills in, an occupation.

Repayment period – the repayment period starts in the second, third, fourth, or fifth year after the year of the first withdrawal and ends when the LLP balance is zero.

RRSP deduction limit – the maximum amount you can deduct from contributions you made to your RRSP, PRPP or SPP or to your spouse’s or common law partner’s RRSP or SPP for a year (excluding transfers to your RRSPs of certain types of qualifying income). The calculation is based, in part, on your earned income in the previous year. PAs, PSPAs, PARs, and your unused RRSP deduction room at the end of the previous year are also used to calculate the limit.

Specified pension plan (SPP) – a pension plan or similar arrangement that has been prescribed under the Income Tax Regulations as a “specified pension plan” for purposes of the Income Tax Act (currently the Saskatchewan Pension Plan is the only arrangement prescribed to be a specified pension plan). Many of the rules related to RRSPs also apply to SPPs.

Spouse – a person to whom you are legally married.

Chapter 1 – Participating in the LLP

The Lifelong Learning Plan (LLP) allows you to withdraw up to $10,000 in a calendar year from your registered retirement savings plans (RRSPs) to finance full-time training or education for you or your spouse or common-law partner. You cannot participate in the LLP to finance your children's training or education, or the training or education of your spouse's or common-law partner's children. As long as you meet the LLP conditions every year, you can withdraw amounts from your RRSPs until January of the fourth calendar year after the year you made your first LLP withdrawal. You cannot withdraw more than $20,000 in total.

You cannot withdraw funds from an SPP or a PRPP under the LLP. However, SPP and PRPP contributions can be designated as an LLP repayment. You do not have to include the withdrawn amounts in your income, and the RRSP issuer will not withhold tax on these amounts. You have to repay these withdrawals to your RRSP or PRPP or both generally within 10 years. Any amount that you do not repay when it is due will be included in your income for the year it was due. This chapter explains the conditions that you and the LLP student have to meet to participate in the LLP, and how to make an LLP withdrawal. The chart below summarizes the LLP withdrawal process.

LLP conditions to meet:

• you have an RRSP;
• you are a Canadian resident; and
• the LLP student is enrolled (or has received an offer to enrol before March of the following year):
  1. as a full-time student;
  2. in a qualifying educational program; and
  3. at a designated educational institution.
• If you have made an LLP withdrawal in a previous year, your repayment period has not begun.

All four conditions must be met. However, if the LLP student meets one of the disability conditions (see Who can be enrolled on a part-time basis?), he or she can be enrolled on a part-time basis.

Fill out Form RC96, Lifelong Learning Plan (LLP) Request to Withdraw Funds from an RRSP and give it to your RRSP issuer.

You can withdraw:

• up to $10,000 in a calendar year; and
• up to $20,000 in total.

The LLP student has to:

• enrol before March of the year after the year of the LLP withdrawal; and
• still be enrolled in that program in April of the year after the LLP withdrawal, unless the student has already completed the program by then.

The RRSP issuer will withhold tax at source on the part of the withdrawal that exceeds the $10,000 limit for the year.

The RRSP issuer will send you a T4RSP slip showing the amount you withdrew under the LLP.

You must file an income tax and benefit return and fill out a Schedule 7 to report all LLP withdrawals made in the tax year.

Who can participate in the LLP?

If you are an RRSP owner and a resident of Canada, you can usually participate in the LLP to withdraw funds from your RRSPs for your own or your spouse's or common-law partner's education.

Certain types of RRSPs, such as locked-in RRSPs, do not allow you to withdraw funds from them. Your RRSP issuer can give you more information about the types of RRSPs you have.

You cannot participate in the LLP after the end of the year you turn 71. For more information, see Your options in the year you turn 71.

You have to be a resident of Canada when you receive funds from your RRSPs under the LLP. If you are not sure whether you are considered a resident or non-resident of Canada, or if you need more information about residency status, go to Canada Revenue Agency, or call the International Enquiries for Individuals and Trusts at one of the following numbers: 1-800-959-8281 (toll free within Canada and the Continental U.S.), or 1-613-940-8495 (from outside Canada and the Continental U.S. - we accept collect calls by automated response. Please note that you may hear a beep and experience a normal connection delay).

If you become a non-resident after you make an LLP withdrawal, see If you become a non-resident of Canada.

What conditions does the LLP student have to meet?

The LLP student can be you, or your spouse or common-law partner. You cannot name your child or the child of your spouse or common-law partner as an LLP student.

The LLP student must enrol on a full time basis in a qualifying educational program at a designated educational institution.

If the LLP student meets the disability conditions, the student can enrol on a part time basis (see Who can be enrolled on a part time basis?). If you are not sure whether the LLP student is enrolled on a full time basis, check with the educational institution.

The educational institution determines when the student is considered to be enrolled in a program, and when the student is no longer enrolled. Usually, the student is considered to be enrolled when part or all of his or her fees are paid.

If the LLP student is not already enrolled in a program, the student must have received a written offer from a designated educational institution to enrol before March of the year after you withdraw funds from your RRSPs under the LLP. A conditional written offer is acceptable.

If you made an LLP withdrawal in a previous year, your repayment period has not begun.

You cannot participate in the LLP if the student has already completed the program and is no longer enrolled.

What is a qualifying educational program?

A qualifying educational program is an educational program offered at a designated educational institution. Where an educational institution, other than one certified by Employment and Social Development Canada (ESDC), offers the educational program, the program must be at a post-secondary school level. All programs must meet the following conditions:

• last three consecutive months or more; and
• require a student to spend 10 hours or more per week on courses or work in the program. Courses or work includes lectures, practical training, and laboratory work, as well as research time spent on a post-graduate thesis. It does not include study time.

What is a designated educational institution?

A designated educational institution is a university, college, or other educational institution that qualifies for purposes of the education amount on line 322 of Schedule 11 of your income tax and benefit return. If you are not sure whether a particular institution qualifies as a designated educational institution, see Pamphlet P105, Students and Income Tax, or call 1-800-959-8281.

Who is a full-time student?

The educational institution determines who is a full-time or part-time student. The requirement that the student enrol as a full-time student is separate from the qualifying educational program requirement. The qualifying educational program requirement can be met by a person taking courses by correspondence or by a person enrolled in a distance education program. Even if the student is enrolled in a program that requires spending 10 hours or more per week on courses or work in the program, the institution may consider the student to be enrolled on a part-time basis. If this is the case, you cannot participate in the LLP. The following section explains the only exception to this rule.

Who can be enrolled on a part-time basis?

An LLP student who meets one of the disability conditions can be enrolled on a part-time basis. The program in which the student is enrolled must still be a qualifying educational program that usually requires a student to spend 10 hours or more per week on courses or work in the program. However, a student who meets the disability conditions can spend less than 10 hours per week on courses or work in the program.

We consider the LLP student to meet the disability conditions if one of the following situations applies:

• the student cannot reasonably be expected to be enrolled as a full-time student because of a mental or physical impairment, and the student has submitted a signed letter from a medical doctor, an optometrist, a speech-language pathologist, an audiologist, an occupational therapist, a physiotherapist, or a psychologist stating this; or
• the student is entitled to the disability amount on line 316 of the student's income tax and benefit return for the year of the LLP withdrawal.
  

What happens if the LLP student does not enrol in the program in time?

If the LLP student is not already enrolled when you make the withdrawal, the student has to enrol in a qualifying educational program before March of the year after you made the LLP withdrawal.

If the LLP student does not enroll in the program in time, you have to cancel your LLP withdrawal. For more information, see How to cancel your LLP withdrawal.

How much you can withdraw

Under the LLP, you can withdraw up to $10,000 from your RRSPs in a calendar year. This is your annual LLP limit. The amount you withdraw is not limited to the amount of tuition or other education expenses. Your spouse or common-law partner can also withdraw up to $10,000 from their RRSPs under the LLP in the same year you do. For more information, see Can my spouse or common-law partner and I participate in the LLP at the same time?.

You cannot withdraw more than $20,000 each time you participate in the LLP. This is your total LLP limit. You can participate in the LLP again, starting the year after you bring your LLP balance to zero.

If you withdraw more than the annual LLP limit of $10,000, the excess will be included in your income for the year of the withdrawal. The excess does not reduce your total LLP limit of $20,000.

If you withdraw more than the total LLP limit of $20,000, the excess will be included in your income for the year you exceed the total LLP limit.

When can you make LLP withdrawals?

As long as the LLP student continues to meet the LLP conditions (see What conditions does the LLP student have to meet?) you can keep withdrawing amounts from your RRSPs until the earliest of the following:

• the commencement of your repayment period, or
• January of the fourth calendar year after the year you made your first LLP withdrawal.

You may not make additional LLP withdrawals until the year after your previous LLP balance is zero.

How to make an LLP withdrawal

To make an LLP withdrawal, use Form RC96, Lifelong Learning Plan (LLP) Request to Withdraw Funds from an RRSP. You have to fill out Form RC96 for each withdrawal you make. To get more copies of the form, go to Forms and publications.

Fill out Part 1 of Form RC96. You can name yourself or your spouse or common-law partner as the LLP student in Part 1. After you fill out this part, give the form to your RRSP issuer, who will fill out Part 2. Your RRSP issuer will not withhold tax from the funds you withdraw if you meet the LLP conditions. Your RRSP issuer will send you a T4RSP slip, Statement of RRSP Income showing the amount you withdrew under the LLP in box 25. Attach this slip to your income tax and benefit return.

Filing an income tax and benefit return

Starting in the year you make your first LLP withdrawal, you have to file an income tax and benefit return every year until you have repaid all your LLP withdrawals or included them in your income. You have to send us an income tax and benefit return even if you do not owe any tax or you did not make a repayment to your RRSP.

Fill out Schedule 7, RRSP and PRPP Unused Contributions, Transfers, and HBP or LLP Activities (included in your general income tax and benefit package), and attach it to your income tax and benefit return to show the LLP withdrawals or the repayments made in the tax year. This will help both you and us to keep track of them.

When you report a withdrawal on the Schedule 7, tick Box 264 if your spouse or common-law partner is the student. If you do not make this indication we will assume that you are the designated student. If withdrawals are made in different years, the student indicated must remain the same or your withdrawal may be considered ineligible.

How the withdrawal from your RRSP affects your RRSP/PRPP deduction

You can continue to contribute to your RRSP or PRPP or both and deduct your contributions from your income on your income tax and benefit return after you have made an LLP withdrawal from your RRSP. However, you may not be able to deduct contributions you made before the withdrawal from your RRSP. The following explains the restrictions that apply.

If you do not have an RRSP, you cannot set one up and then make an LLP withdrawal immediately. The contribution has to be in the RRSP for 90 days before you can deduct it from your income on your income tax and benefit return.

If you already have an RRSP and you contribute to it in the 89-day period before you make an LLP withdrawal, you may not be able to deduct the contribution from your income on your income tax and benefit return even if you repay this amount to your RRSP under the LLP. If the value of the RRSP right after the LLP withdrawal is more than or the same as the amount of the RRSP contribution, you can deduct the entire contribution. If the value of the RRSP right after the LLP withdrawal is less than the amount of the RRSP contribution, you cannot deduct any or all of the contribution.

To find out how much you cannot deduct, use the following formula for each RRSP from which you make an LLP withdrawal:

Total contributions you made to the RRSP in the 89-day period before the LLP withdrawal

Minus:
Value of the RRSP immediately after you made the LLP withdrawal

Equals:
The part of the contributions you cannot deduct at any time

Use the Appendix to determine the part of contributions to your RRSP or PRPP or both that you or your spouse or common law partner made to your RRSP that are not deductible for any year.

What happens if the LLP student leaves the educational program?

For you to be able to repay the LLP withdrawals over a 10-year period, the LLP student usually has to either:

• complete the program; or
• continue to be enrolled in the educational program at the end of March of the year after the LLP withdrawal.

If the LLP student leaves the program before April of the year after the withdrawal, you can still make your repayments over a 10-year period if less than 75% of the student's tuition is refundable by the educational institution.

If the LLP student leaves the program before April of the year after the withdrawal, and 75% or more of the LLP student's tuition is refundable, you have to cancel the LLP withdrawal. For more information, see How to cancel your LLP withdrawal. If you do not cancel it, the amount you withdrew will be included in your income for the year you withdrew it.

We check the LLP student's education amount on line 322 of Schedule 11 of their income tax and benefit return for the year you make the withdrawal and for the following year. If we cannot determine from the education amount that the LLP student has continued in the program, we will contact you to find out if you still meet the conditions to make the repayments over a 10-year period.

Can an LLP withdrawal be cancelled

You can cancel your LLP withdrawal only if one or more of the following situations apply:

• The LLP student was not enrolled in the qualifying educational program when you made the withdrawal but had received written notification that he or she was entitled to enrol before March of the following year and did not enrol in time.
• The LLP student left the program before April of the year after the withdrawal, and 75% or more of the student’s tuition was refundable.
• You became a non-resident of Canada before the end of the year in which you made an LLP withdrawal.

A cancellation payment is not considered an RRSP or PRPP contribution and therefore, must not be entered as a contribution
in “Part A – Contributions” of Schedule 7, RRSP and PRPP Unused Contributions, Transfers, and HBP or LLP Activities, as you cannot claim a deduction for this amount on your income tax and benefit return.

How to cancel your LLP withdrawal

Step 1 – Repay the amount you withdrew from your RRSP. You can make your cancellation payment to:

• the same RRSP you withdrew the funds from;
• any other of your RRSPs;
• a new RRSP.

You cannot make a cancellation payment to your PRPP, SPP or spouse’s or common-law partner’s RRSPs or SPP. Your RRSP issuer will give you a RRSP contribution (cancelation payment) receipt.

Step 2 – Send us a letter and include the following:

• the information about the RRSP owner (this is the individual who made the RRSP withdrawal):
  • first name and initials;
  • last name;
  • social insurance number;
  • mailing address;
  • telephone number.
• the year you made the withdrawal;
• the amount withdrawn;
• the date you became a non-resident (if applicable);
• the reason for the cancellation:
  • The LLP student was not enrolled in the qualifying educational program when you made the withdrawal but had received written notification that he or she was entitled to enrol before March of the following year and did not enrol in time.
  • The LLP student left the program before April of the year after the withdrawal, and 75% or more of the student’s tuition was refundable.
  • You became a non-resident of Canada before the end of the year in which you made an LLP withdrawal.
• the amount and date of the cancellation payment; and
• the signature of the RRSP owner.

Step 3 – Send this letter along with your RRSP contribution (cancellation payment) receipt to:

Pension Workflow Section
Ottawa Technology Centre
875 Heron Road
Ottawa ON K1A 1A2

You cannot make your cancellation payment if the withdrawal did not meet the LLP conditions when you made the withdrawal. One or more of the situations listed above must apply for you to cancel your withdrawal.

Due date for cancellation payment

If you are a resident of Canada when you file your income tax and benefit return for the year in which you made the LLP withdrawal, the due date for the cancellation payment is December 31 of the year after the year you made the withdrawal.

If you are a non-resident of Canada when you file your income tax and benefit return for the year in which you made the LLP withdrawal, the due date for the cancellation payment is whichever is earlier:

• the date you file your income tax and benefit return for the year you made the withdrawal; or
• December 31 of the year after the year of the withdrawal.

Questions you may have

How often can I participate in the LLP?

There is no limit to the number of times you can participate in the LLP over your lifetime. Starting in the year after you bring your LLP balance to zero, you can participate in the LLP again and withdraw up to $20,000 over a new participation period.

Can my spouse or common-law partner and I participate in the LLP at the same time?

Yes. You can do any of the following:

• you can participate in the LLP for yourself while your spouse or common-law partner participates in the LLP for him or herself;
• you can both participate in the LLP for either of you; or
• you can participate in the LLP for each other.

Each of you can withdraw up to the annual LLP limit of $10,000 in a year and up to the total LLP limit of $20,000 over the period you are participating in the LLP.

Can I make LLP withdrawals from more than one RRSP?

You can make LLP withdrawals for you or your spouse or common-law partner from more than one RRSP as long as you are the annuitant (plan owner) of each RRSP. Your RRSP issuer will not withhold tax on these amounts. Although the maximum amount you can withdraw each time you participate is $20,000, there is an annual withdrawal limit of $10,000.

Can I make LLP withdrawals for other purposes?

As long as you meet all the LLP conditions when you make the withdrawal, you can use the funds you withdrew for any purpose.

Can I participate in the LLP and in the Home Buyers' Plan at the same time?

You can participate in the LLP even if you have not yet fully repaid the withdrawn amounts from your RRSPs under the Home Buyers’ Plan (HBP). For more information about the HBP, see HBP.

What if the LLP student does not qualify for the education amount?

It is possible to participate in the LLP if the LLP student is a full time student but does not qualify for the education amount on line 322 of Schedule 11 of his or her income tax and benefit return because he or she is receiving a reimbursement, benefit, grant, or allowance for the educational program. In such a case, we may ask you for documents to show that you qualify to participate in the LLP.

Chapter 2 – Repaying your withdrawals

Over a period of 10 years, you have to repay to your RRSP or PRPP or both the amounts you withdrew under the LLP. Generally, for each year of your repayment period, you have to repay 1/10 of the total amount you withdrew, until the LLP balance is zero.

When and how much to repay

You will receive an LLP Statement of Account each year with your notice of assessment or notice of reassessment. This statement will show the LLP withdrawals, your LLP balance, the amounts you have repaid to date, cancellations, income inclusions, and the amount you have to repay the following year.

To view your LLP Statement of Account online, go to My account for Individuals. To view the LLP Statement of Account of someone who has authorized you on their behalf go to Represent a Client.

To determine when you have to start repaying your LLP withdrawals, use the chart. The latest year you can start repaying your LLP withdrawals is the fifth year after your first LLP withdrawal. However, in most cases, you have to start repaying your withdrawals before that year.

We determine when your repayment period starts by checking line 322 of Schedule 11 of the LLP student's income tax and benefit return to see if the student was entitled to the education amount as a full-time student for at least three months. If the LLP student does not meet this education amount condition two years in a row, your repayment period usually starts in the second of those two years. If the LLP student continues to meet this condition every year, your repayment period starts in the fifth year after your first LLP withdrawal.

In some cases, the LLP student is not entitled to the education amount as a full time student for at least three consecutive months in any calendar year. This can happen if the program is short and the student starts it near the end of the year. In that case, your first repayment year is the second year after the year of your LLP withdrawal. If the student is not entitled to the education amount for three months in any year because the student left the program, see What happens if the LLP student leaves the educational program?.

After tax year 2016, the steps 3 and 4 in the above chart will use the definition of a qualifying student to determine when you have to start repaying your LLP withdrawals.

How to make your repayments

To make your repayments, you have to contribute to your RRSP or PRPP or both in the repayment year or in the first 60 days of the following year. You can make the repayments to any of your RRSPs with any issuer, your PRPP, or you can open a new RRSP.

You have to designate your repayment for the year by completing Schedule 7, RRSP and PRPP Unused Contributions, Transfers, and HBP or LLP Activities (included in your income tax and benefit package), and file it with your income tax and benefit return for the repayment year.

You have to make your repayments to your RRSP or PRPP or both even if your RRSP deduction limit is zero or a negative amount. We do not consider an amount you designate as a repayment under the LLP to be an RRSP/PRPP contribution. Therefore, you cannot claim a deduction for this amount on your income tax and benefit return.

Contributions you cannot designate

Not all contributions you make to your RRSP or PRPP or both in the repayment year, or in the first 60 days of the following year, can be designated as a repayment under the LLP.

You cannot designate contributions that :

• your employer made to your PRPP;
• you make to your spouse's or common-law partner's RRSPs (or that he or she makes to your RRSPs);
• are amounts you transfer directly to your RRSPs from a registered pension plan, deferred profit sharing plan, registered retirement income fund, specified pension plan, PRPP, or another RRSP;
• are amounts you deducted as a re-contribution of an excess qualifying withdrawal that you designated to have a provisional past service pension adjustment approved;
• are amounts you designate as a repayment under the Home Buyers' Plan (HBP) for the year;
• are amounts you contribute in the first 60 days of the repayment year, that you:
  • deducted on your income tax and benefit return for the previous year, or
  • designated as a repayment for the previous year under the HBP or the LLP.
• are amounts you receive in the repayment year (such as retiring allowances) that you include in your income, designate as a transfer to your RRSP and deduct on your income tax and benefit return for the year of receipt.

If you want to repay earlier

Any payments you make before the first repayment year reduce your first required repayment. For example, if your first repayment year is 2017 and $1,000 is your required repayment and you make an early repayment of $600 in 2016, your required repayment for 2017 is $400.

If you repay less than the amount required

If you designate an amount less than the amount you have to repay, you have to include the difference in your income on line 129 of your income tax and benefit return. The amount you include in your income is equal to the amount you have to repay minus the amount you designate as a repayment for the year. The amount you include in your income cannot be more than the result of this calculation.

Your LLP balance is reduced by the amount you repay plus the amount you include in income. If you want to calculate the amount you have to repay for the next year, divide your LLP balance by the number of years remaining in your repayment period.

If you repay more than the amount required for a year

If you repay and designate more than you have to repay for a year, the amount you have to repay in each of the following years will be less. The LLP Statement of Account we send with your notice of assessment or notice of reassessment takes into account any additional payments you make and tells you how much you have to repay for the next year. If you want to calculate the amount you have to repay for the next year, divide your LLP balance by the number of years left in your repayment period.

Situations when the repayments have to be made in less than 10 years

Additional repayment rules apply if you:

• die;
• become a non-resident of Canada; or
• reach the age of 71.

If the person who made the LLP withdrawal dies

Usually, if the person who made the LLP withdrawal dies, the legal representative (administrator) has to include the LLP balance in the deceased person's income for the year of death. If the deceased person contributed to an RRSP in the year of death, the representative can designate the contributions as a repayment under the LLP by completing Schedule 7, RRSP and PRPP Unused Contributions, Transfers, and HBP or LLP Activities. This reduces the LLP balance that has to be included in the deceased person's income.

LLP election on death

If, at the time the person who made the LLP withdrawal dies, and the deceased had a spouse or common-law partner who is a resident of Canada, that spouse or common-law partner can elect jointly with the deceased person's legal representative (administrator) to make the repayments and to not include the LLP balance in the deceased person's income. If the surviving spouse or common-law partner is also the representative, he or she makes the election.

To make this election, the surviving spouse or common-law partner and the deceased person's legal representative sign a letter and attach it to the deceased person's income tax and benefit return for the year of death. The letter should state that an election is being made to have the surviving spouse or common-law partner make the repayments under the LLP, and to not have the income inclusion rule apply to the deceased person. The deceased person's LLP balance then becomes the survivor's LLP balance. The surviving spouse or common law partner makes the repayments to his or her own RRSP or PRPP or both.

If the surviving spouse or common-law partner has no LLP balance of his or her own at the time the person who made the LLP withdrawal dies, the survivor is deemed to be the LLP student for the LLP balance taken over from the deceased person. The surviving spouse or common-law partner will have to make repayments to his or her RRSP over the normal 10-year repayment period, determined as though the year of his or her first LLP withdrawal is the year the person died. For more information on when the repayment period will begin see When and how much to repay, and the chart When to start repaying your LLP withdrawals.

If the surviving spouse or common-law partner wants to make LLP withdrawals, the LLP balance taken over from the deceased person will limit the amount he or she can withdraw.

The survivor's total limit will be $20,000 minus the LLP balance taken over from the deceased person. The annual LLP limit for the year of death will be $10,000 minus the remaining LLP balance of the deceased person.

If the surviving spouse or common-law partner already had an LLP balance of his or her own at the time the person dies, the deceased person's LLP balance is added to the survivor's LLP balance. This may cause the survivor's LLP balance to be more than the $10,000 annual limit or the $20,000 total limit. If this occurs, we will not include the excess in the income of either the survivor or the deceased person. The surviving spouse or common-law partner has to repay the new balance over his or her own repayment period.

If you become a non-resident of Canada

If you become a non-resident of Canada after the year you made an LLP withdrawal, you have to include your LLP repayable balance in income on your income tax and benefit return for the year you become a non-resident or repay that balance to your RRSP or PRPP or both. The due date for this repayment is the earlier of the following dates:

• before the time you file your income tax and benefit return for the year that you become a non-resident; or
• 60 days after you become a non-resident.

You have to designate your repayment for the year by completing Schedule 7 and filing it with your income tax and benefit return for the year you become a non-resident. If you do not repay your LLP balance by the due date, you have to include the unpaid amount in your income for the year you became a non-resident. The amount is included in your income for the period you were a resident of Canada.

If you become a non-resident before the end of the year in which you make an LLP withdrawal, you have to cancel your LLP withdrawals by paying them back to your RRSP.

For more information, see How to cancel your LLP withdrawal.

Your options in the year you turn 71

The year after you reach the age of 71, you will not be able to repay any withdrawals to your RRSP or PRPP or both. This is because you cannot contribute to an RRSP or PRPP the year after you turn 71 years of age.

In the year you turn 71, you can choose one of the following:

• repay your remaining repayable balance to your RRSP or PRPP or both;
• make a partial repayment to your RRSP or PRPP or both. Your remaining repayable balance at the beginning of the year you turn 72 will be divided by the number of years remaining in your repayment period, and that calculated amount will be included as income on line 129 of your income tax and benefit return for each of those years; or
• make no repayment to either your RRSP or PRPP. Your remaining repayable balance at the beginning of the year you turn 71 will be divided by the number of years remaining in your repayment period, and that calculated amount will be included as income on line 129 of your income tax and benefit return for each of those years.

Appendix - Effect of LLP on RRSP deductions

RC96 Lifelong Learning Plan (LLP) Request to withdraw funds from an RRSP

RC96 Lifelong Learning Plan (LLP) Request to withdraw funds from an RRSP

Online services

My Account

Using the CRA’s My Account service is a fast, easy, and secure way to access and manage your tax and benefit information online, seven days a week.

To register for My Account, go to My Account for Individuals. Registration is a two-step process. You will be asked to enter some personal information and create a user ID and password or use a Sign‑in Partner. Be sure to have your current and previous year’s personal tax returns on hand. To register, a return for one of these two years must have been assessed. After you complete step one, you will have instant access to some of your tax and benefit information. Step two includes the mailing of the CRA security code. We will mail it to the address we have on file for you. The separate mailing of the security code is a measure used to protect you from identity theft and to ensure the security of your personal information. You will have access to the full suite of services available in My Account once you enter your code.

An authorized representative can access most of these online services through Represent a Client.

MyCRA – Mobile app

Getting ready to file? Use MyCRA to:

• check your RRSP deduction limit;
• look up a local tax preparer; and
• see what tax filing software the CRA has certified.

Done filing? Use MyCRA to:

• check the status of your tax return; and
• view your notice of assessment.

Use MyCRA throughout the year to:

• view your personalized benefit and credit payment amounts;
• check your TFSA contribution room;
• update your contact details;
• manage your direct deposit and online mail information; and
• request your proof of income (option C).

To get more details on what you can do with MyCRA and to access the CRA’s web-based mobile app, go to Mobile apps.

Electronic payments

Make your payment using:

• your financial institution’s online or telephone banking services;
• the CRA’s My Payment service at My Payment—save time, pay online!; or
• pre-authorized debit at My Account for Individuals.

For more information on all payment options, go to Make a payment to the Canada Revenue Agency.

For more information

What if you need help?

If you need more information after reading this guide, visit Canada Revenue Agency or call 1-800-959-8281.

Forms and publications

To get our forms or publications, go to Forms and publications or call 1-800-959-8281.

Guides

P105 - Student and Income Tax

Forms

Schedule 7 - RRSP and PRPP Unused Contributions, Transfers, and HBP or LLP Activities

RC96 - Lifelong Learning Plan (LLP) Request to Withdraw Funds from an RRSP

Tax Information Phone Service (TIPS)

For personal and general tax information by telephone, use our automated service, TIPS, by calling 1-800-267-6999.

Teletypewriter (TTY) users

If you have a hearing or speech impairment and use a TTY call 1-800-665-0354 during regular business hours.

Service complaints

You can expect to be treated fairly under clear and established rules, and get a high level of service each time you deal with the Canada Revenue Agency (CRA); see the Taxpayer Bill of Rights.

If you are not satisfied with the service you received, try to resolve the matter with the CRA employee you have been dealing with or call the telephone number provided in the CRA’s correspondence. If you do not have contact information, go to Contact information.

If you still disagree with the way your concerns were addressed, you can ask to discuss the matter with the employee’s supervisor.

If you are still not satisfied, you can file a service complaint by filling out Form RC193, Service-Related Complaint. For more information go to Make a service complaint.

If the CRA has not resolved your service-related complaint, you can submit a complaint with the Office of the Taxpayers’ Ombudsman.

Reprisal complaint

If you believe that you have experienced reprisal, fill out Form RC459, Reprisal Complaint.

For more information about reprisal complaints, go to Reprisal Complaints.

Tax information videos

We have a number of tax information videos for individuals on topics such as the income tax and benefit return, the Canadian tax system, and tax measures for persons with disabilities. To watch our videos, go to Video gallery.

Date modified:

2016-12-08