The Lifelong Learning Plan (LLP) program is designed to assist individuals who are now following a different career path and looking for money to cover the educational costs. This Lifelong Learning Plan (LLP) lets you withdraw up to $10,000. per year to a maximum of $20,000 from your registered retirement savings plans (RRSPs) to finance full-time training or education for you or your spouse or common-law partner.

Three conditions apply. Have an RRSP, be a Canadian resident and enroll as a LLP student in a qualified program at a designated educational institution on a full time basis. Certain types of RRSPs, such as locked-in plans do not allow you to make withdrawals from them - check with the issuer.

Quick answers:

	You and your spouse can use the LLP individually or for each other.
	You can withdraw from more than one RRSP.
	You can continue to contribute to an RRSP.
	After you repay an existing LLP you can start a new plan.
	After qualifying for the LLP, you can use the money for any purpose such as study materials or living expenses.
	Does not impede any Home buyers plan/RRSP withdrawals
	In the event of death, the loan balance could be transferred to the surviving spouse or included in the final return of the deceased.
	If you become a non-resident then the LLP balance becomes payable for the year you become a non-resident.
	You cannot use the LLP after your turn age 69. If a loan balance exists, repayment amounts have to be included as income. Only individuals who meet certain specified disability conditions can be enrolled on a part-time basis, otherwise the program needs to be 10 hours or longer per week and last 3 three consecutive months or more.

Making withdrawals from your RRSPs is achieved by filing a RC96 form with the financial institution that holds your RRSPs funds. In return, they issue you a T4RSP slip for filing with your tax return. You can order the RC96 directly from the tax dept at 1-800-959-2221 or print from the following links

RC96-FILL Electronic Form: Lifelong Learning Plan (LLP) - Request to Withdraw Funds From an RRSP
RC96 Lifelong Learning Plan (LLP) Request to withdraw funds from an RRSP

Timing is an important factor if contributing to a new RRSP. Your RRSP needs to be active 90 days prior to any LLP withdrawals. Established RRSPs may be subject to a partial, but similar time related withdrawal formula.

The monies withdrawn from your RRSP under the LLP are not subject to withholding tax. However, repayment of the monies borrowed from your RRSP is subject to a maximum repayment schedule period of 10 years, which begins in either the fifth year after the first withdrawal or in the second year after you are no longer enrolled in the educational program. (whichever come first) After the repayment schedule begins, you are required to repay at least one-tenth of the loan back to your RRSP or include that amount on your income tax return as income.

Useful links

- CCRA have published on the web, an informative guide "Lifelong Learning Plan (LLP). It contains a glossary of terms, spells out the workings of the plan and includes all the forms you'll need to withdraw monies from the financial institution. The guide explains the calculations, provides examples and tables with case studies.

- The Learning Resource Network was created as a single window on learning for the federal public service of Canada. Its goal is to help users to find relevant resources and services, to establish and maintain contact with public servants, organizations and communities interested in learning.

- Learning, Education & Training: Explore the spectrum of training programs and courses offered by government, community organizations and private training institutions. Find links to schools, community colleges, universities and other organizations across Canada.

In the News on the web:

Lifelong Learning: Is there any downside to an LLP? You lose potential tax deferred growth during the time that the funds are not held in your RRSP. Therefore, where you have a significant non-registered portfolio, you may want to consider using non-RRSP monies first.

- A U.S based site called The Learning Network claims to be the best of the Internet's content, resources, and shopping for parents, teachers, and kids. Launched in September 2000, the company's mission is to be an online consumer network of the world's best learning and information resources, personalized to help parents, teachers, and students of all ages take control of their learning and make it part of their everyday lives. It's a little sideways from our main topic of education funding, but interesting all the same.

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