Can an LLP withdrawal be cancelled?

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

A cancellation payment is not considered an RRSP, PRPP and SPP contribution and therefore, must not be entered as a contribution in “Part A – Contributions” of Schedule 7, RRSP, PRPP and SPP 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 any of the following:

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do not repay all the funds you withdrew, you have to include the unpaid amounts in your income for the year they were withdrawn.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 cancellation letter that must be received by CRA no later than 60 days from December 31st of the year after the year you received the funds and include all of the following:

Step 3 – Send this letter along with your RRSP contribution (cancelation payment) receipt to one of the following addresses:

If your residential address is based in:

Ontario, Prince Edward Island, Newfoundland and Labrador, Yukon, Nunavut, Northwest Territories as well as the following cities in the province of Quebec (Montreal, Quebec, Laval, Sherbrooke, Gatineau and Longueuil):

Send your request to:

Canada Revenue Agency
Sudbury Tax Centre
Pension Workflow Team
Post Office Box 20000, Station A
Sudbury, ON  P3A 5C1

If your residential address is based in:

Manitoba, Saskatchewan, Alberta, British Columbia, Nova Scotia, New Brunswick and the remaining areas in the province of Quebec not listed under the Sudbury Tax Centre:

Send your request to:

Canada Revenue Agency
Winnipeg Tax Centre
Pension Workflow Team
Post Office Box 14000, Station Main
Winnipeg, MB  R3C 3M2

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 the earlier of the following dates:

Example 

On May 3, 2021, Patrick applies to three Canadian universities as a full-time student.
On July 12, 2021, Patrick receives a written offer to enrol in a program at one of the universities.
On July 13, 2021, he makes an LLP withdrawal of $10,000 from his RRSP. Since Patrick withdrew the funds in 2021, he has to enrol in the program before March 2, 2022. If he does not, Patrick will have to cancel the LLP withdrawal by paying back the $10,000 to his RRSP by December 31, 2022. Any amounts he does not repay will be included in his income for 2021.

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