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Michelle Cull is so excited as she has just landed her dream job of working at a community college full time. She earned $50,000 from
Michelle Cull is so excited as she has just landed her dream job of working at a community college full time. She earned $50,000 from wages in 2020 and because of the pandemic and living at home, she saved quite a lot of money. Now she can use what she learned in ADMS 2541 about what to do with the money. Her employer and her, each contributed $3,000 to a defined contribution pension plan, which creates a pension adjustment of $6,000. Her marginal tax rate is 29% and her average tax rate is 17%. What is the maximum amount she can add to an RRSP? O a. $3,800 O b. $6,000 O c. $27,230 O d. $0 O e. $9,000 Information / ADMS 254 Shelley has just started a new job. Her employer has asked her to join the work pension plan. This plan involves her contributing 5% of her salary and her employer matches these contributions each year. At the end of 30 years, her employer will give her a salary equal to 50% of her salary until she dies. What type of retirement plan is this? O a. RRSP O b. RPP O c. Defined benefit plan O d. GAINS O e. Defined contribution plan
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