Question
Mrs. Ida Smith has a 2019 net employment income of $90,000, taxable benefits of $3,500, an RPP contribution of $4,000, child support payments received of
Mrs. Ida Smith has a 2019 net employment income of $90,000, taxable benefits of $3,500, an RPP contribution of $4,000, child support payments received of $12,000 and interest income received of $1,000. Her employer makes a matching contribution to her pension plan and therefore her PA is $8,000. At the end of 2019, her Unused RRSP Deduction Room was $5,100 and she has no undeducted contributions. During 2020, she contributes $7,000 to her RRSP and makes an RRSP deduction of $5,200. Required: What is the amount of Mrs. Smiths: a) earned income for RRSP purposes. b) RRSP contribution limit for 2020. c) unused RRSP Deduction Room at the end of 2020. d) undeducted RRSP contributions at the end of 2020.
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