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Regarding Rodney s Registered Retirement Savings Plan situation, assume that the following data is accurate: - His earned income in 2019 was $100,000, and $150,000
Regarding Rodney s Registered Retirement Savings Plan situation, assume that the following data is accurate:
- His earned income in 2019 was $100,000, and $150,000 in 2020
- His Pension Adjustment based on 2019 data was $8,000, and based on 2020 data, it was $9,000.
- Unused RRSP deduction limit room at the end of 2019 was $3,000.
- He had undeducted RRSP contributions balance of $3,275 at the end of 2019.
- He contributed $13,000 to his RRSP in 2020.
Required:
- What is the RRSP contribution room limit for 2020
- What is the maximum RRSP tax deduction that can be claimed for 2020
- What is the unused RRSP Contribution Room available at the end of 2020
- Determine any undeducted contributions remaining at the end of 2020; and
- Determine whether at the end of 2020, there are any excess RRSP contributions, on which penalties will apply
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