Lifelong Learning Plan (LLP)

RC4112(E) Rev. 11

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Table of contents

• 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?
  • How do you make the withdrawal?
  • How does your withdrawal affect your RRSP deduction?
  • What happens if the LLP student leaves the educational program?
  • 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
  • Situations where 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
• Lifelong Learning Plan (LLP) Cancelling a withdrawal made in___
• For more information
  • What if you need help?
  • Forms and publications
  • My Account
  • Teletypewriter (TTY) users
• Your opinion counts

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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, your spouse or your 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 You do not have to include the withdrawn amounts in your income, and the RRSP issuer will not withhold tax on these amounts.

You have a maximum of 10 years to repay the withdrawn amounts to your RRSPs. 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 definitions 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 technical terms that we use in this guide.

Common-law partner – this applies to a person who is not your spouse (see spouse definition), 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 such a relationship for 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.

In addition, an individual immediately becomes your common-law partner if you previously lived together in a conjugal relationship for at least 12 continuous months and you have resumed living together in such a relationship. Under proposed changes, this condition will no longer exist. The effect of this proposed change is that a person (other than the person described in b) or c) above), will be your common-law partner only after your current relationship with that person has lasted at least 12 continuous months. This proposed change will apply to 2001 and later years.

Reference to "12 continuous months" in this definition includes any period that you were separated for less than 90 days because of a breakdown in the relationship.

Designated educational institution – this is a university, college, or other educational institution that qualifies for purposes of the education amount on line 323 of your tax return.

LLP balance – your LLP balance is the total of the amounts you have withdrawn from your RRSPs that meet the LLP rules, minus the amounts you have repaid to your RRSPs 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 that you withdraw from your RRSPs under the LLP rules.

Qualifying educational program – this is an educational program that requires a student to spend 10 hours or more per week on courses or work in the program, and that lasts three or more consecutive months. The educational program must be offered at a designated educational institution. Where an educational institution, other than one certified by Human Resources and Skills Development Canada, offers the educational program, the program must be at a post-secondary school level.

Repayment year – a year in which you have to make a repayment under the LLP. You have to make the repayment no later than 60 days after the end of that year.

RRSP contribution – this is the amount you pay, in cash or in kind, when you contribute to an RRSP.

RRSP deduction – this is the amount you indicate on line 208 of your tax return.

RRSP deduction limit – this is the maximum amount you can deduct for a year for contributions you made to your own, or to your spouse's or common-law partner's RRSPs.

RRSP owner (also called annuitant) – this is the individual named in the RRSP contract as the one who will receive the RRSP money at maturity.

Spouse – this applies only to a person to whom you are legally married.

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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 year after the year you make your first LLP withdrawal. You cannot withdraw more than $20,000 in total.

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 RRSPs 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.

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 that you have.

You cannot participate in the LLP after the end of the year you turn 71.

For more information, see Options when 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 our Canada Revenue Agency page, or call us at 1-800-959-8281.

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

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 enrolling 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 to enrol before March of the year after you withdraw funds from your RRSPs. A conditional written offer is acceptable.

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 Human Resources and Skills Development Canada, offers the educational program, the program must be at a post-secondary school level. The program has to:

• 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 the education amount on line 323 of your tax 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 a medical doctor, an optometrist, a speech-language pathologist, an audiologist, an occupational therapist, a physiotherapist, or a psychologist has certified this on Form T2202, Education and Textbook Amount Certificate; or
• the student is entitled to the disability amount on line 316 of the student's tax return for the year of the LLP withdrawal.

Note
If the student was allowed the disability amount on his or her return for the previous year and still meets the eligibility requirements for the disability amount, the student will meet the disability condition for the LLP. The student will also meet this condition if someone else claimed the disability amount for the student in the previous year and the student still meets the eligibility requirements for the disability amount. If you have questions about the disability amount, call 1-800-959-8281.

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

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 the LLP withdrawal.

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

How much can you withdraw?

Under the LLP, you can withdraw up to $10,000 in a calendar year from your RRSPs. 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 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 can keep withdrawing amounts from your RRSPs until January of the fourth calendar year after the year you made your first LLP withdrawal, as long as the LLP student continues to meet the conditions explained under What conditions does the LLP student have to meet?.

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.

How do you make the withdrawal?

To make an LLP withdrawal, use Form RC96, Lifelong Learning Plan (LLP) Request to Withdraw Funds From an RRSP. You have to complete Form RC96 for each withdrawal that you make. You can use the form at the end of this guide. To get more copies of the form, go to Forms and publications or call 1-800-959-2221.

Complete 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, showing the amount you withdrew under the LLP. Attach this slip to your tax return.

Filing a tax return

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

Complete Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities (included in your income tax package), and attach it to your return to show your total LLP withdrawals and repayments in the year. This will help both you and the CRA to keep track of them.

When you file your return for the first year you are participating in the LLP, you can use Schedule 7 to change the LLP student that you named on Form RC96. If you named your spouse or common-law partner as the LLP student, you can change it to yourself. If you named yourself as the LLP student, you can change it to your spouse or common-law partner. You cannot change the LLP student you have named after you file your return for that first year.

How does your withdrawal affect your RRSP deduction?

You can continue to make contributions to RRSPs and deduct them from your income on your return after you have made an LLP withdrawal. However, you may not be able to deduct contributions you made before the withdrawal. 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 tax 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 return at any time 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 some 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:

Use the Appendix to determine the part of the RRSP contributions you or your spouse or common-law partner made that is 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 323 of the student's 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.

Note
Special rules apply if the LLP student dies. For more information, see If the person who made the LLP withdrawal dies.

How to cancel your LLP withdrawal?

You can cancel your LLP withdrawal by paying it back to your RRSPs if any of the following situations applies:

• 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; or
• you became a non-resident of Canada before the end of the year in which you made an LLP withdrawal.

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

You can make the payment to any of your RRSPs with any issuer, or you can open a new RRSP. You cannot make a cancellation payment to your spouse's or common-law partner's RRSPs.

When you make the payment to your RRSP, your RRSP issuer will give you a receipt. Complete the cancellation form and send it, along with the receipt, to the address on the form.

A cancellation payment is not considered as an RRSP contribution and must not be entered as a contribution in “Part A – Contributions” of the Schedule 7 as you cannot claim a deduction for this amount on your tax return.

Any amount that you do not repay will be included in your income for the year you withdrew it. If we have already assessed your return for that year, we will reassess it to include the unpaid amount. Interest will be charged and penalties assessed, if applicable.

Due date for cancellation payment

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

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

• the date you file your 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 qualifying 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 that 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 of 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 withdrawn amounts from your RRSPs under the Home Buyers' Plan (HBP) that you have not yet fully repaid. For more information about the HBP, see Guide RC4135, Home Buyers' Plan (HBP).

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

It is possible to participate in the LLP even if the LLP student does not qualify for the education amount on line 323 of his or her tax return. The LLP student may not be able to claim the education amount because he or she is receiving a reimbursement, benefit, grant, or allowance for the educational program. If it is only for one of these reasons that the LLP student cannot claim the education amount, you can still participate in the LLP. However, we may ask you for documentation to show that you qualify to participate in the LLP.

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Chapter 2 – Repaying your withdrawals

You have up to 10 years to make repayments to your RRSPs. Usually, each year you have to repay 1/10 of the total amount you withdrew until the full amount is repaid. You do not have to pay any interest on the amounts you withdrew.

When and how much to repay

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

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 on line 323 of the LLP student's tax 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 for three 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?.

Note
Even if you become bankrupt, you still have to repay all your LLP withdrawals to your RRSPs. If you do not, you have to include the required amounts in your income each year as they become due.

When to start repaying your LLP withdrawals
Use this chart to determine when you have to start repaying your LLP withdrawals. This chart does not cover cancelling your withdrawal. For that situation, see How to cancel your LLP withdrawal.
Step 1 Is this the year of your first LLP withdrawal? If no, go to Step 2.	If yes, you do not have to start repaying your LLP withdrawal this year.
Step 2 Is this the fifth year after your first LLP withdrawal? (If you made your first LLP withdrawal in 2008, then 2013 would be the fifth year after your first LLP withdrawal.) If no, go to Step 3.	If yes, you have to start repaying your LLP withdrawals this year.
Step 3 Will the LLP student be entitled to the education amount as a full time student on line 323 of his or her return for at least three months this year? If no, go to Step 4.	If yes, you do not have to start repaying your LLP withdrawals this year.
Step 4 Was the LLP student entitled to the education amount as a full time student for at least three months on his or her return for last year? If no, you have to start repaying your LLP withdrawals this year.	If yes, you do not have to start repaying your LLP withdrawals this year.

How to make your repayments

To make your repayments, you have to contribute to your RRSPs 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, or you can open a new RRSP.

You cannot designate a contribution you made to your spouse's or common-law partner's RRSPs (or a contribution your spouse or common-law partner made to your RRSPs) as a repayment under the LLP. You have to designate your repayment for the year by completing Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities (included in your income tax package), and filing it with your tax return for the repayment year.

You have to make your repayments to your RRSPs 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 contribution. Therefore, you cannot claim a deduction for this amount on your return.

Contributions you cannot designate

You may have made contributions to your RRSPs from January 1 of the repayment year up to the 60th day of the following year that cannot be designated as repayments under the LLP.

You cannot designate contributions that are:

• amounts you contributed to your spouse's or common-law partner's RRSPs
• amounts your spouse or common-law partner contributed to your RRSPs);
• amounts you transferred directly to your RRSPs from a registered pension plan, deferred profit sharing plan, registered retirement income fund, the Saskatchewan Pension Plan, or another RRSP;
• amounts you deducted as a recontribution of an excess qualifying withdrawal that you designated to have a past service pension adjustment approved;
• amounts you contributed in the first 60 days of the repayment year, that you deducted on your tax return for the previous year, or that you designated as a repayment for the previous year under the Home Buyers' Plan or LLP; or
• amounts you received in the repayment year, such as retiring allowances, that you transferred to your RRSPs and deducted or will deduct on your tax return for that year.

What if you want to repay earlier?

Any payments you make before the first repayment year reduce your first required repayment. For example, assume your first repayment year is 2012 and $1,000 is your required repayment. If you make an early repayment of $600 in 2011, your required repayment for 2012 is $400.

What if you repay less than the amount required?

If you designate an amount that is less than the amount you have to repay, you have to include the difference in your income on line 129 of your tax 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.

What if you repay more than the amount required?

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 on 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 where the repayments have to be made in less than 10 years

Additional repayment rules apply if you:

• die;
• become a non-resident; or
• are over 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 (liquidator) 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 using Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities. This reduces the LLP balance that has to be included in the deceased person's income.

Note
An LLP student who dies may not have been the person who made the LLP withdrawal. If this is the case, the person who made the withdrawal makes the required LLP repayments over the usual 10-year period.

LLP election on death

If, at the time the person who made the LLP withdrawal dies, he or she has a spouse or common-law partner who is a resident of Canada, that individual can elect jointly with the deceased person’s legal representative (liquidator) 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 tax 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 for 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 RRSPs.

Note
If an election is made and the deceased person had not made a repayment for the year of death, no repayment will be required for that year for the deceased.

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

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 tax return for the year you become a non-resident or repay that balance to your RRSP. The due date for this repayment is whichever is earlier:

• before you file your return for the year 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 tax return for the year that 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 that you became a non-resident. The amount is included in 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 RRSPs.

If you are a non-resident of Canada when you file your tax 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 return for the year you made the withdrawal; or
• December 31 of the year after the year of the withdrawal.

If you are a resident of Canada when you file your tax 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.

When you make the cancellation payment to your RRSPs, your RRSP issuer will give you a receipt. Complete the cancellation form and send it, along with the receipt, to the address shown on the form.

If you do not make the cancellation payment by the due date, we will include the LLP withdrawal in your income for the year you made it. You may be charged interest, if applicable.

Options when you turn 71

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

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

• repay to your RRSP your remaining repayable balance;
• make a partial repayment to your RRSP. 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 tax return for each of those years; or
• make no repayment to your RRSP. 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 tax 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

Lifelong Learning Plan (LLP) Cancelling a withdrawal

Lifelong Learning Plan (LLP) Cancelling a withdrawal

For more information

What if you need help?

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

Forms and publications

To get our forms and publications, go to Forms and publications page or call 1-800-959-2221.

Guide
RC4135, Home Buyers’ Plan (HBP)

Pamphlets
P105 Student and Income Tax
RC4059, My Account for Individuals

Forms
Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities
RC96, Lifelong Learning Plan (LLP) Request to Withdraw Funds from an RRSP
T2202, Education and Textbook Amounts Certificate

My Account

My Account is a secure, convenient, and time-saving way to access and manage your tax and benefit information online, seven days a week! If you are not registered with My Account but need information right away, use Quick Access to get fast, easy and secure access to some of your information now. For more information, go to My Account for Individuals or see Pamphlet RC4059, My Account for individuals.

Teletypewriter (TTY) users

TTY users can call 1-800-665-0354 for bilingual assistance during regular business hours.

Your opinion counts

If you have any comments or suggestions that could help us  improve our publications, we would like to hear from you.Please send your comments to:

Taxpayer Services Directorate
Canada Revenue Agency
750 Heron Road
Ottawa ON   K1A 0L5