Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Travis is a great football star and received a full scholarship when he was at Concordia. He graduated from Concordia in December 2 0 2

Travis is a great football star and received a full scholarship when he was at Concordia. He graduated from Concordia in December 2020 and joined the Canadian Football League (CFL) on January 1,2021. He never worked before this as he was always in football training camps over the summer. To date, he has never made a Registered Retirement Savings Plan (RRSP) contribution. He considers his salary low but knows that in time, he will prove himself on the field and bring in the big bucks. He was happy that on December 16,2023, he received a large bonus and wished to maximize his RRSP contribution to use as a deduction on his 2023 personal income tax returns. There is no pension plan in the CFL. The formula for RRSP contribution is the lesser of 18% of the previous years earned income or the yearly maximum based on the RRSP table below. How much did Travis put in his RRSP? Hint: Ignore the $ 2,000-lifetime over-contribution grace amount and consider carry-forward amounts.
RRSP TABLE:
Year RRSP Contribution Limit
2021 $27,830
2022 $29,210
2023 $30,780
Year Travis' salary
2021 $85,000
2022 $163,000
2023 $200,000
Select one:
a.
$75,290
b.
$98,640
c.
$44,510
d.
$44,640
e.
$48,222

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Foundations Of Business Analysis

Authors: M Douglas Berg

1st Edition

1465222030, 9781465222039

More Books

Students also viewed these Finance questions