Comments on: Lifelong Learning Plan (LLP): Borrow from yourself to finance your education http://wheredoesallmymoneygo.com/lifelong-learning-plan-llp-borrow-from-yourself-to-finance-your-education/ A personal finance blog written by Preet Banerjee Wed, 23 May 2012 17:49:11 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Preet http://wheredoesallmymoneygo.com/lifelong-learning-plan-llp-borrow-from-yourself-to-finance-your-education/#comment-182 Preet Sat, 27 Feb 2010 21:26:27 +0000 http://symbiantcapital.com/2007/11/26/lifelong-learning-plan-llp-borrow-from-yourself-to-finance-your-education/#comment-182 @Stephen, it's true there are no specific wordings on CRA's site that I can see regarding this specific example, but I'm inclined to believe you can't do this. I suggest calling CRA on Monday morning to find out definitively. The other thing you could consider is just contributing to your own RRSP and making the withdrawal after 90 days. The reason I think you can't do what you suggest is after looking at the form: http://www.cra-arc.gc.ca/E/pbg/tf/t2205/t2205-08e.pdf it seems to suggest that you still need to fill out this form regardless of whether the withdrawal is for HBP, LLP or any other reason. Read the notes on page 2. Please let me know if you find any other information (or get an answer from CRA). Good luck! @Stephen, it’s true there are no specific wordings on CRA’s site that I can see regarding this specific example, but I’m inclined to believe you can’t do this. I suggest calling CRA on Monday morning to find out definitively. The other thing you could consider is just contributing to your own RRSP and making the withdrawal after 90 days.

The reason I think you can’t do what you suggest is after looking at the form: http://www.cra-arc.gc.ca/E/pbg/tf/t2205/t2205-08e.pdf it seems to suggest that you still need to fill out this form regardless of whether the withdrawal is for HBP, LLP or any other reason. Read the notes on page 2.

Please let me know if you find any other information (or get an answer from CRA).

Good luck!

]]> By: Stephen http://wheredoesallmymoneygo.com/lifelong-learning-plan-llp-borrow-from-yourself-to-finance-your-education/#comment-181 Stephen Sat, 27 Feb 2010 17:27:56 +0000 http://symbiantcapital.com/2007/11/26/lifelong-learning-plan-llp-borrow-from-yourself-to-finance-your-education/#comment-181 Here is my question. I want to invest in a 7K spousal RRSP before the RRSP deadline March 1st (so I can claim in on my 2009 return). Next, since I am a full time student, I will get my wife to withdraw the full amount under the LLP towards my education, 90 days later. My question is whether or not the 3 year spousal rule kicks in (i.e., the government will count the withdrawl under my income). http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/wthdrwls/spsl-eng.html They never mention LLP in this document. I am trying to maximize my 2009 return while taking advantage of the fact that my wife is a lower income earner and can use her RRSPs to fund MY education. Thoughts? Here is my question. I want to invest in a 7K spousal RRSP before the RRSP deadline March 1st (so I can claim in on my 2009 return). Next, since I am a full time student, I will get my wife to withdraw the full amount under the LLP towards my education, 90 days later. My question is whether or not the 3 year spousal rule kicks in (i.e., the government will count the withdrawl under my income).
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/wthdrwls/spsl-eng.html
They never mention LLP in this document.

I am trying to maximize my 2009 return while taking advantage of the fact that my wife is a lower income earner and can use her RRSPs to fund MY education.

Thoughts?

]]> By: Preet http://wheredoesallmymoneygo.com/lifelong-learning-plan-llp-borrow-from-yourself-to-finance-your-education/#comment-180 Preet Tue, 27 Nov 2007 10:00:16 +0000 http://symbiantcapital.com/2007/11/26/lifelong-learning-plan-llp-borrow-from-yourself-to-finance-your-education/#comment-180 <p>Excellent suggestion Mike! That is certainly an option for people to consider. Another option would be to not pay it back at all if you do make the withdrawal - which I will highlight in a future post as part of a strategy for certain investors (involves a small leverage and is not for everyone).</p> Excellent suggestion Mike! That is certainly an option for people to consider. Another option would be to not pay it back at all if you do make the withdrawal – which I will highlight in a future post as part of a strategy for certain investors (involves a small leverage and is not for everyone).

]]> By: FourPillars http://wheredoesallmymoneygo.com/lifelong-learning-plan-llp-borrow-from-yourself-to-finance-your-education/#comment-179 FourPillars Tue, 27 Nov 2007 08:55:52 +0000 http://symbiantcapital.com/2007/11/26/lifelong-learning-plan-llp-borrow-from-yourself-to-finance-your-education/#comment-179 <p>Very good post.</p><p>I'd have to say that if I was going back to school full time (not bloody likely!) and had at least one year of low income, I would be inclined to just withdraw the money from my rrsp rather than borrow. The tax you pay on the rrsp withdrawals should be fairly low and you can "pay it back" once you are working (as contributions). </p><p>Mike</p> Very good post.

I’d have to say that if I was going back to school full time (not bloody likely!) and had at least one year of low income, I would be inclined to just withdraw the money from my rrsp rather than borrow. The tax you pay on the rrsp withdrawals should be fairly low and you can "pay it back" once you are working (as contributions).

Mike

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