FINA 248 RRSP Review Questions

1. George works for ABC company and earned $55,000 in 2021. Assuming George has no carry forward and no pension what is Georges RRSP contribution limit for 2022?

1. The year is 2022. Mary earned $250,000 in 2022 and $225,000 in 2021. Assuming Mary has no carry forward and no pension what is Marys RRSP contribution limit for 2022?

1. Janice works at New Roads Chevrolet and earned $37,500 in 2021. Her employer offers Janice the ability to participate in the company DCPP which allows Janice to contribute 3% of her salary to the DCPP. The company in turn matches Janices contribution to the DCPP. Assuming no carry forward what is Janices RRSP contribution room for 2022? How much is the PA?

1. Alfredos employer has a career average DBPP. Alfredo earned $65,000 in 2021 and $70,000 in 2022. If the pension offers a benefit of 2% per year of employment what how much RRSP eligibility does Alfredo have as it relates to the 2022 tax year?

1. Zi Chou works at Amazon and earned $67,500 in 2021. She has a DCPP with a combined employee employer contribution in the amount of 5%. She also has RRSP carry forward in the amount of $76,000.

1. What is Zis PA for 2022
2. What is Zis RRSP contribution room in 2022?

1. The year is 2019 and Fred works as a self-employed contractor. His gross income is $275,000 and his net profit is $125,000. He also earned net rental income of $12,000 from a rental property that he owns. He earned $3000 in dividends and $1200 in interest income. How much is Freds earned income? How much is Freds RRSP contribution room in 2020 assuming no carry forward?

1. Karen is overcontributed to her RRSP by $7500. How much will she be penalized on a monthly basis?

1. Last year, Jeff earned $55,000, and as a result he earned a benefit entitlement of $1,100 in the company's defined benefit pension plan. What is the amount of Jeff's new contribution room arising this year?