knowledge topics
Lifelong Learning Plan (LLP)
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- 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 an 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.2
- 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.3,4,5
- Tax impact
- Lifelong Learning Plan balance
- Identify the situations in which the repayment period to the Lifelong Learning Plan may be shortened.6
- 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 time7
- Lifelong Learning Plan participant’s death8
- Lifelong Learning Plan participant becomes a non-resident9
- Lifelong Learning Plan participant reaches age 7110
- Explain the circumstances in which the Lifelong Learning Plan participant may cancel their participation in the program.11
- Identify the process by which the Lifelong Learning Plan participant may cancel their participation in the program.11
- Explain how each of the factors may impact the suitability of withdrawing funds under the Lifelong Learning Plan to attend a qualifying educational program, such as:
- 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.
Glossary of Verbs (mouse over to see definition)
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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
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally

REFERENCES
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/cndtns/menu-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/rpymnts/hw-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/rpymnts/rly-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/rpymnts/mssd-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/rpymnts/mrrqd-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/spcl/menu-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/spcl/lvs-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/rpymnts/xcptns/dth-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/nnrsdnt-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/rpymnts/xcptns/trn71-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/cncllng/menu-eng.html