Use RRSP for Life Long Learning. Canada 150 Recommendation #44

Saturday’s= Retirement

Do you know that you can withdraw funds from your registered retirement savings plan (RRSP) for the purposes of going to school and not pay immediate tax on that withdrawal? You pay the money back to your RRSP over 15 years. If you don’t contribute the money back to your RRSP in any year, then you pay tax on the annual repayment.

This plan works the same way as the RRSP Home Buyers Plan which is much more popular.

If you are considering going back to school and you have RRSP funds this could be the best plan. Reduce the amount of student loans you need by lending the money to yourself under the Lifelong Learning Plan.

If you are considering going back to school in a couple of years it would make sense to contribute to your RRSP now and get the refunds. You can then withdraw the funds when you go back to school.

Check with your financial people to make sure that this will work for you.

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