Cancelling your participation in the LLP

You cannot make your cancellation payment if the withdrawal did not meet the LLP rules when you made the withdrawal.

Answer a few questions to determine whether you can cancel your participation in the LLP.

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 withdrawal.

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.

Example
On May 3, 2011, Patrick applies to three Canadian universities as a full-time student. On July 12, 2011, Patrick receives a written offer to enrol in a program at one of the universities. On July 13, 2011, he makes an LLP withdrawal of $10,000 from his RRSP. Since Patrick withdrew the funds in 2011, he has to enrol in the program before March 1, 2012. If he does not, Patrick will have to cancel the LLP withdrawal by paying back the $10,000 to his RRSP by December 31, 2012. We will include any amount he does not repay in his income for 2011.

We consider the student 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 must do one of the following:

• Include the total amount withdrawn as income on line 129 of your return for the year you received the funds. If your return for that year is already assessed, it will be reassessed to include the withdrawals. Interest will be charged and penalties assessed, if applicable.
• Repay the total amount withdrawn by December 31 of the year after the year of the RRSP withdrawal. You can repay the total amount withdrawn either to your existing RRSP or to a new RRSP with any issuer. The RRSP issuer will give you an official receipt for the contribution. The repayment will not affect your RRSP deduction room and you will not be taxed on your RRSP withdrawal.

For example, if you withdrew funds from your RRSP in July 2010, you must repay this amount to your RRSP by December 31, 2011.

You can make the cancellation 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 cancellation payment to your RRSP, your RRSP issuer will give you a receipt. Complete the Lifelong Learning Plan (LLP) - Cancelling a withdrawal form and send it, along with the receipt, to the following address:

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

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.

Related topics

• You become a non-resident