Lifelong Learning Plan (LLP)
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Evaluation
Knowledge Levels and Associated Verbs
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Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
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Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
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Application
Ability to put information to use / to use knowledge for relevant, practical purposes
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Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
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Hold cursor over or click on each term to read its definition.
- Define the parties to the Lifelong Learning Plan.
- Lifelong Learning Plan Participant
- Lifelong Learning Plan Student
- Define the terms associated with the Lifelong Learning Plan.
- Qualified education program
- Designated educational institution
- Explain the qualifying conditions to withdraw cash from a Registered Retirement Savings Plan under the Lifelong Learning Plan. 1
- Explain how the Lifelong Learning Plan may be used by both spouses to provide for one spouse’s education.
- Explain that the full-time enrolment requirement is waived when a withdrawal is made from a Registered Retirement Savings Plan under the Lifelong Learning Plan to help a related disabled person attend a qualified educational program.
- Explain how a Registered Retirement Savings Plan deduction may be affected if the withdrawal under the Lifelong Learning Plan is made within 90 days of a Registered Retirement Savings Plan contribution.
- Explain the repayment schedule required for withdrawals made under the Lifelong Learning Plan.2
- Calculate the annual repayments required under the Lifelong Learning Plan.
- At the beginning of the repayment term
- At any point throughout the repayment term
- Identify the current amount of repayment required under the Lifelong Learning Plan.
- Explain how a Lifelong Learning Plan participant designates on their tax return that a contribution to a Registered Retirement Savings Plan is a Lifelong Learning Plan repayment.3
- Explain the impact of repayment made to the Lifelong Learning Plan.
- Tax impact
- Lifelong Learning Plan balance
- Explain the impact of failing to make repayment to the Lifelong Learning Plan. 4,5,6
- Tax impact
- Lifelong Learning Plan balance
- Identify the situations in which the repayment period to the Lifelong Learning Plan may be shortened.7
- Explain the options available to the Lifelong Learning Plan participant (or their legal representative in the case of death) in the situations when their repayment period is shortened.
- Lifelong Learning Plan participant leaves school or does not enrol in time8
- Lifelong Learning Plan participant’s death9
- Lifelong Learning Plan participant becomes a non-resident10
- Lifelong Learning Plan participant reaches age 7111
- Explain the circumstances in which the Lifelong Learning Plan participant may cancel their participation in the program.12
- Identify the process by which the Lifelong Learning Plan participant may cancel their participation in the program.13
- Determine how each of these factors may impact the suitability of withdrawing funds under the Lifelong Learning Plan to attend a qualifying educational program:
- Impact on ability to attend qualified educational program
- Impact on cash flow
- Loss of asset growth within Registered Retirement Savings Plan
- Expected interest cost using alternative borrowing options
- Evaluate how each of the factors may impact the suitability of withdrawing funds under the Lifelong Learning Plan to attend a qualifying educational program.
REFERENCES
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Evaluation
Knowledge Levels and Associated Verbs
|
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
|---|---|---|---|---|---|---|---|---|---|
|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define the parties to the Lifelong Learning Plan.
- Lifelong Learning Plan Participant
- Lifelong Learning Plan Student
- Define the terms associated with the Lifelong Learning Plan.
- Qualified education program
- Designated educational institution
- Explain the qualifying conditions to withdraw cash from a Registered Retirement Savings Plan under the Lifelong Learning Plan.1
- Explain how the Lifelong Learning Plan may be used by both spouses to provide for one spouse’s education.
- Explain that the full-time enrolment requirement is waived when a withdrawal is made from a Registered Retirement Savings Plan under the Lifelong Learning Plan to help a related disabled person attend a qualified educational program.
- Explain how a Registered Retirement Savings Plan deduction may be affected if the withdrawal under the Lifelong Learning Plan is made within 90 days of a Registered Retirement Savings Plan contribution.
- Explain the repayment schedule required for withdrawals made under the Lifelong Learning Plan.2
- Calculate the annual repayments required under the Lifelong Learning Plan.
- At the beginning of the repayment term
- At any point throughout the repayment term
- Identify the current amount of repayment required under the Lifelong Learning Plan.
- Explain how a Lifelong Learning Plan participant designates on their tax return that a contribution to a Registered Retirement Savings Plan is a Lifelong Learning Plan repayment.3
- Explain the impact of repayment made to the Lifelong Learning Plan.
- Tax impact
- Lifelong Learning Plan balance
- Explain the impact of failing to make repayment to the Lifelong Learning Plan.4,5,6
- Tax impact
- Lifelong Learning Plan balance
- Identify the situations in which the repayment period to the Lifelong Learning Plan may be shortened.7
- Explain the options available to the Lifelong Learning Plan participant (or their legal representative in the case of death) in the situations when their repayment period is shortened.
- Lifelong Learning Plan participant leaves school or does not enrol in time8
- Lifelong Learning Plan participant’s death9
- Lifelong Learning Plan participant becomes a non-resident10
- Lifelong Learning Plan participant reaches age 7111
- Explain the circumstances in which the Lifelong Learning Plan participant may cancel their participation in the program.12
- Identify the process by which the Lifelong Learning Plan participant may cancel their participation in the program.13
- Determine how each of these factors may impact the suitability of withdrawing funds under the Lifelong Learning Plan to attend a qualifying educational program:
- Impact on ability to attend qualified educational program
- Impact on cash flow
- Loss of asset growth within Registered Retirement Savings Plan
- Expected interest cost using alternative borrowing options
- Evaluate how each of the factors may impact the suitability of withdrawing funds under the Lifelong Learning Plan to attend a qualifying educational program.
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