If you qualify, you can "borrow" money from your RRSP to fund your or your spouse/common-law partner's education using the LLP program. However, the funds you withdraw from your RRSP will need to be paid back in the form of RRSP or PRPP contributions designated as LLP repayments. Otherwise, the CRA will add the minimum payment required for the tax year to your income.
To designate a portion of your RRSP as an LLP repayment:
- Select Find* in the upper right-hand corner of your screen.
- Type "Lifelong Learning Plan" in the Find window, select it from the list and then select Go.
- Select the box for Designate an amount as a Lifelong Learning Plan repayment on the Lifelong Learning Plan (LLP) Profile step and then select Continue.
- Follow the instructions on the Details of the Lifelong Learning Plan (LLP) step and then select Continue.
- If you're using the CD/Download edition of TurboTax: Follow the instructions on the Lifelong Learning Plan (LLP) Repayment for 2018 step and then select Continue.
*If you don't see the Find button, you may not have completed the Setting Up/Introduction section of your return. Continue through the Setting Up section until the Find button appears.