Question
During 2020, Ms. Sunshine has a net employment income of $95,000 after claiming her RPP deduction of $4,500. Based on her RPP contributions of $4,500
During 2020, Ms. Sunshine has a net employment income of $95,000 after claiming her RPP deduction of $4,500. Based on her RPP contributions of $4,500 and the matching contributions made by her employer, her employer reports a 2020 Pension adjustment of $9,000. During the same year, she also has taxable capital gains of $37,800, net rental income of $8,400, and pays spousal support of $16,400.
At the end of 2020, Ms. Sunshine has an unused RRSP Deduction Room of $24,000. Also at this time, her RRSP contains uneducated contributions of $3,600. In 2021, she makes contributions to her RRSP of $17,000.
Required:
Determine Ms. Sunshine’s maximum RRSP deduction for 2021.
a. Assuming she deducts her maximum, determine the amount of any unused RRSP Deduction room that she will have available at the end of 2021, and indicate the amount of any uneducated contributions remaining at the end of 2021.
b. Show full calculations in your Excel.
Step by Step Solution
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1 RRSP deduction limit as follows Unused RRSP Deduction Room of 24000 Add the lessor of 18 of your i...Get Instant Access to Expert-Tailored Solutions
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