Cancelling your LLP withdrawal

You can cancel your LLP withdrawal only if one or more of the following situations apply:

  • The LLP student was not enrolled in the qualifying educational program when you made the withdrawal but had received written notification that he or she was entitled to enrol before March of the following year and did not enrol in time.
  • The LLP student left the program before April of the year after the withdrawal, and 75% or more of the student's tuition was refundable.
  • You became a non-resident of Canada before the end of the year in which you made an LLP withdrawal.

A cancellation payment is not considered an RRSP or PRPP contribution and therefore, must not be entered as a contribution in “Part A – Contributions” of Schedule 7, RRSP and PRPP Unused Contributions, Transfers, and HBP or  LLP Activities, as you cannot claim a deduction for this amount on your income tax and benefit return.

Questions and answers button

Answer a few questions to determine if you must cancel your LLP withdrawal.


How to cancel your LLP withdrawal

Step 1 – Repay the amount you withdrew from your RRSP. You can make your cancellation payment to:

  • the same RRSP you withdrew the funds from;
  • any other of your RRSPs;
  • a new RRSP.

You cannot make a cancellation payment to your PRPP, SPP or spouse’s or common-law partner’s RRSPs or SPP. Your RRSP issuer will give you a RRSP contribution (cancelation payment) receipt.

Note

If you do not repay all the funds you withdrew, you have to include the unpaid amounts in your income for the year they were withdrawn. If we have already assessed your income tax and benefit return for that year, we will reassess it to include the unpaid amount. We may also charge you interest and penalties.

Step 2 – Send us a letter and include the following:

  • the information about the RRSP owner (this is the individual who made the RRSP withdrawal);
    • first name and initials;
    • last name;
    • social insurance number;
    • mailing address;
    • telephone number.
  • the year you made the withdrawal;
  • the amount withdrawn;
  • the date you became a non-resident (if applicable);
  • the reason for the cancellation:
    • The LLP student was not enrolled in the qualifying educational program when you made the withdrawal but had received written notification that he or she was entitled to enrol before March of the following year and did not enrol in time.
    • The LLP student left the program before April of the year after the withdrawal, and 75% or more of the student’s tuition was refundable.
    • You became a non-resident of Canada before the end of the year in which you made an LLP withdrawal.
  • the amount and date of the cancellation payment; and
  • the signature of the RRSP owner.

Step 3 – Send this letter along with your RRSP contribution (cancelation payment) receipt to:

Pension Workflow Section
Ottawa Technology Centre
875 Heron Road
Ottawa ON K1A 1A2

You cannot make your cancellation payment if the withdrawal did not meet the LLP conditions when you made the withdrawal. One or more of the situations listed above must apply for you to cancel your withdrawal.

Due date for cancellation payment

If you are a resident of Canada when you file your income tax and benefit return for the year in which you made the LLP withdrawal, the due date for the cancellation payment is December 31 of the year after the year you made the withdrawal.

If you are a non-resident of Canada when you file your income tax and benefit return for the year in which you made the LLP withdrawal, the due date for the cancellation payment is whichever is earlier:

  • the date you file your income tax and benefit return for the year you made the withdrawal; or
  • December 31 of the year after the year of the withdrawal.

Example

On May 3, 2016, Patrick applies to three Canadian universities as a full-time student.
On July 12, 2016, Patrick receives a written offer to enrol in a program at one of the universities.
On July 13, 2016, he makes an LLP withdrawal of $10,000 from his RRSP. Since Patrick withdrew the funds in 2016, he has to enrol in the program before March 1, 2017. If he does not, Patrick will have to cancel the LLP withdrawal by paying back the $10,000 to his RRSP (or PRPP) by December 31, 2017. Any amounts he does not repay will be included in his income for 2016.

We consider the student to be enrolled when part or all of his or her fees are paid. If the LLP student is not already enrolled in a program, the student must have received a written offer from a designated educational institution to enrol before March of the year after you withdraw funds from your RRSPs under the LLP. A conditional written offer is acceptable.
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