Taxation Page 2 Question 2 (6.5 marks) Fred Tran is looking for some advice on his retirement savings and has provided the following information regarding his income: 2019 2020 Employment income $85,000 $ 96,000 Less: Registered Pension Plan contribution (8.500) (9.600) Net employment income 76,500 86.400 Grossed-up dividends 6,000 9,000 Interest 1,000 2,000 Net rental income (loss) (2.000) 10.000 Total property income 5,000 21.000 Taxable capital gains 6.000 4.500 $87.500 $111.900 Pension adjustment $ 9,350 $ 10,950 Fred's unused Registered Retirement Savings Plan (RRSP) deduction room at the end of 2019 was $2,000. Fred would like to know if there are any other tax-deferred ways to save for retirement other than RRSPs. Fred has heard of Tax-Free Savings Accounts (TFSAs) but doesn't know much about them. Required: a) Calculate the maximum RRSP deduction available to Fred for 2020. (4.5 marks) b) Address Fred's question regarding TFSAs by providing four comparisons to RRSPs. (2 marks)