When must the first repayment for the Lifelong Learning Plan be made after the first withdrawal?

When must the first repayment for the Lifelong Learning Plan be made after the first withdrawal?

• A. 30 days after withdrawal
• B. 60 days after the 5th year
• C. 10 years from the first withdrawal
• D. 5 years from the first withdrawal

Answer: (B)

The correct answer regarding the first repayment for the Lifelong Learning Plan (LLP) is that it is due 60 days after the end of the 5th year following the first withdrawal. The Lifelong Learning Plan allows individuals to withdraw funds from their Registered Retirement Savings Plan (RRSP) to finance a qualifying education program, which is an important financial tool for those enhancing their skills or pursuing new educational opportunities. Upon making the first withdrawal, there is a grace period before repayments must begin. Specifically, the repayment schedule does not start immediately; instead, it allows for a period during which the individual can focus on their education. After the end of the 5-year period from the first withdrawal, individuals have to start repaying their LLP withdrawals, with the first repayment being due 60 days after that 5-year mark. This provides a clear structure for financial planning, ensuring that participants can prepare for the repayment phase after completing their education. This information aligns with the rules governing the LLP, emphasizing the planning involved in education financing and the importance of understanding the terms of repayment for such withdrawal programs.

The correct answer regarding the first repayment for the Lifelong Learning Plan (LLP) is that it is due 60 days after the end of the 5th year following the first withdrawal. The Lifelong Learning Plan allows individuals to withdraw funds from their Registered Retirement Savings Plan (RRSP) to finance a qualifying education program, which is an important financial tool for those enhancing their skills or pursuing new educational opportunities.

Upon making the first withdrawal, there is a grace period before repayments must begin. Specifically, the repayment schedule does not start immediately; instead, it allows for a period during which the individual can focus on their education. After the end of the 5-year period from the first withdrawal, individuals have to start repaying their LLP withdrawals, with the first repayment being due 60 days after that 5-year mark. This provides a clear structure for financial planning, ensuring that participants can prepare for the repayment phase after completing their education.

This information aligns with the rules governing the LLP, emphasizing the planning involved in education financing and the importance of understanding the terms of repayment for such withdrawal programs.