What happens if I withdraw more than the annual or total limit from the Lifelong Learning Plan (LLP)?

If you withdraw more from your RRSP than the established annual limits, the overage will be added to your income in 2017 and you’ll have to pay tax on it.

Under the LLP, you’re allowed to withdraw up to $10,000 from your RRSPs each year to help you cover the costs of enrolling in a post-secondary program. This amount, known as your annual LLP limit, is not limited to the amount of tuition or other education expenses you might have.

Your spouse or common-law partner (if applicable) can also withdraw $10,000 from their RRSPs under the LLP in the same year you do. Combined, the $20,000 withdrawn from both of your RRSPs is known as your total LLP limit.

Note: Remember, you can participate in the LLP again, beginning in the year after you bring your LLP balance to zero. For more information, refer to the CRA website.

Where can I learn more?