You may withdraw up to $10,000 per year from your RRSP, without immediate taxation, to finance full-time training or higher education for you or your spouse in a qualifying educational program. A qualifying educational program is one that is not less than twelve consecutive weeks in duration and requires students to spend at least 10 hours on course-related “work” per week, excluding study time. Note that having at least 10 hours of course-related “work” per week does not necessarily constitute full-time status. The status is to be determined by the educational institution. A disabled student can qualify with part-time enrollment.

Withdrawals are not allowed from locked-in RRSPs, and cannot exceed $20,000 over a four-year period.

A tax deduction is not allowed for an RRSP contribution made less than 90 days before it is withdrawn under this provision.

You will be requested to repay the amount withdrawn to your RRSP, without interest, in equal payments over a 10-year period. Payments start with the earlier of the second consecutive year in which you or your spouse are not enrolled in full-time studies and the fifth year after the year in which you first made an LLP withdrawal. Any amount not repaid as requested will be added to the income of the planholder for that year. Special rules will apply if the RRSP funds are withdrawn and you, or your spouse, do not complete the educational program.

Information for Tax Tips is provided as a public service by the Chartered Accountants of British Columbia.