TABLE E

Registered Retirement Savings Plan (RRSP): Annual Limits

Formula for RRSP contribution limit: 18% of your previous year's earned income less your previous year's pension adjustment to an annual maximum.

YearAnnual maximum contribution limit2021$27,8302022$29,2102023$30,780Tax-Free Savings Account (TFSA): Annual Limits YearsAnnual LimitYearsAnnual LimitYear started 2009 - 2012$5,000/year2016 - 2018$5,500/year2013 - 2014$5,500/year2019 - 2022$6,000/year2015$10,000/year2023 $6,500/year

Meghan is 20 years old and has decided that on January 1^st she will contribute $6,500 each year to her Tax-Free Savings Account (TFSA) until she turns age 60. Assume it is January 1, 2023, and that Meghan has just made her first TFSA contribution. How much will she have in 40 years in her TFSA if she expects to earn 7% compounded monthly? Assume that TFSA contribution limits remain at the $6,500 limit until Meghans retirement.