Yes, this is called the Lifelong Learning Plan (LLP). You can use it to withdraw up to $10,000 per year from your RRSP – to a maximum of $20,000 over four years – to pay for full-time education or training lasting three consecutive months or more. The LLP is nice because you don’t have to pay tax on those withdrawals like you would when you make a regular withdrawal from an RRSP.
When your program is over – or after six years – you’ll need to start paying back the amount you’ve withdrawn. There’s no interest charged on your withdrawal and you’ll have up to 10 years to repay it.
If this sounds like a sweet deal, give us a call at 1.866.863.6237 to discuss it in more detail.