Lifelong Learning Plan
A provision applicable to the Canadian Registered Retirement Savings Plan (RRSP). The plan allows RRSP contributors a non-taxable temporary withdrawal of up to $20,000 from their accounts in order to finance their education or that of their spouse. The provision is subject to limitations, such as a $10,000 annual withdrawal limit and a maximum repayment period of 10 years, after which the ability to recontribute the borrowed sum is lost. Investopedia Says:
Similar to the Canadian government's Home Buyer's Plan, this provision is intended to allow Canadians to finance their education without losing the benefits of tax-deferral in building their retirement nest egg. Related Terms:
Canada Education Savings Grant - CESG
Canada Revenue Agency - CRA
Income Tax
Registered Education Savings Plan - RESP
Registered Retirement Savings Plan - RRSP
Tax Deferred |