SHORT ANSWER QUESTIONS:

Mike (age 40) and Mabel Williams (age 45) have been contributing to their respective RRSP's for many years. Mike's employment income is $40,000/yr. Every year, he contributes 3% of his salary into his employer's Defined Contribution Pension Plan, which is matched by his employer. His unused RRSP contribution room is $22,000 and this year's PSPA is $700.

Mabel is an engineer earning $160,000/yr. Mabel also receives royalty income of $1,000/yr. for a children's book she published in 2014.

She is a member of her employer's non-contributory DB pension plan into which her firm contributes 4% of her annual salary. Her unused RRSP contribution room is $8,000 and she will have a PSPA this year for $900. Her annual DB pension benefit accrual/entitlement equals 1% of her salary.

Mike and Mabel also own a rental property (jointly) worth $180,000 that generates annual net income of $12,000, for which they each claim 50% for income tax purposes.

1) Calculate Mike and Mabel's respective RRSP contribution limits:

Note: Assume maximum RRSP contribution limit for current year is $26,230.

**You must show your step-by-step calculations below.(10 marks)

Mike:

Mabel:

2) Explain the consequences if Mike over-contributes $1,900 to his RRSP?

*Be specific - 2 marks

3) Explain the consequences if Mabel over-contributes $3,500 to her RRSP?

*Be specific - 2 marks

4) What is the maximum amount that Mabel can contribute to a Spousal RRSP for Mike? (1 mark)

5) Assume Mike retired at age 62 on Jan. 1^st, 2016 and he converted his RRSP into a RRIF. Calculate his minimum RRIF withdrawal amount for 2019, assuming his RRIF balance on Dec. 31, 2018 was $248,000.

*Show your calculation - (2 marks)

7) Alvin's annual salary is $75,000. How much ($) is Alvin required to contribute to his CPP this year?(YMPE = $57,400 & YBE = $3,500).Show calculations (2 marks)

8) How much ($) is Alvin's employer required to contribute to his CPP this year?

(1 mark)

TOTAL:____/20