knowledge topics

Lifelong Learning Plan (LLP)

KNOWLEDGE EXPECTED OF: Both CFP^® Professionals and QAFP^TM 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)

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
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 judgement through careful study
Interpret

To give the meaning of / to construe or understand / to translate orally

REFERENCES

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Financial Planning Body of Knowledge

knowledge topics

Lifelong Learning Plan (LLP)

KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals

Glossary of Verbs (mouse over to see definition)

REFERENCES

KNOWLEDGE EXPECTED OF: Both CFP^® Professionals and QAFP^TM Professionals