Q 47

Points: 1 47 On April 29, 2021, the Morton's won $500,000 in the lottery. They are very excited and want to use the money wisely. Each has agreed to open a Tax-Free Savings Accounts (TFSAs) and to maximize their contributions. To date, no family member has made any TFSA contributions except for Stan who contributed $60,000 over the years, he has never made any withdrawals. They have asked you to help them determine the maximum amount permitted under the TFSA rules and each will then contribute from their lottery winnings. (Hint: consider carryforward balances and contributions up to and including 2021). Stan (father) turns 55 on June 20, 2021 Sandra (mother) turns 48 on March 2, 2021 Anna (Stan's mother who lives with them) turns 71 on December 1, 2021 Jonny (son) turned 23 on March 2, 2021 Twins (born minutes apart): Allen (son) turned 18 on December 31, 2020, and Alley (daughter) turned 18 on January 1, 2021 Eve (daughter) turns 17 on September 4, 2021 Tax-Free Savings Account (TFSA): Annual Limits Years Annual Limit Years Year started 2009 - 2012 $5,000/year 2016 - 2018 2013 - 2014 $5,500/year 2019-2020 2015 $10,000/year 2021 Annual Limit $5,500/year $6,000/year $6,000/year A $265,000 $204,500 $261,500 D $241,000 E $219,000