During 2020, Ms. Sunshine has net employment income of $95,000 after claiming her RPP deduction of $4,500. Based on her RPP contributions of $4,500 and the matching contributions made by her employer, her employer reports a 2020 Pension adjustment of $9,000. During the same year, she also has taxable capital gains of $37,800, net rental income of $8,400, and pays spousal support of $16,400. At the end of 2020, Ms. Sunshine has unused RRSP Deduction Room of $24,000. Also at this time, her RRSP contains undeducted contributions of $3,600. During 2021, she makes contributions to her RRSP of $17,000. Required: Determine Ms. Sunshine’s maximum RRSP deduction for 2021. Assuming she deducts her maximum, determine the amount of any unused RRSP Deduction room that she will have available at the end of 2021, and indicate the amount of any undeducted contributions remaining at the end of 2021. Show full calculations in your Excel.
During 2020, Ms. Sunshine has net employment income of $95,000 after claiming her RPP deduction of $4,500. Based on her RPP contributions of $4,500 and the matching contributions made by her employer, her employer reports a 2020 Pension adjustment of $9,000. During the same year, she also has taxable capital gains of $37,800, net rental income of $8,400, and pays spousal support of $16,400. At the end of 2020, Ms. Sunshine has unused RRSP Deduction Room of $24,000. Also at this time, her RRSP contains undeducted contributions of $3,600. During 2021, she makes contributions to her RRSP of $17,000. Required: Determine Ms. Sunshine’s maximum RRSP deduction for 2021. Assuming she deducts her maximum, determine the amount of any unused RRSP Deduction room that she will have available at the end of 2021, and indicate the amount of any undeducted contributions remaining at the end of 2021. Show full calculations in your Excel.
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 38P
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Question
During 2020, Ms. Sunshine has net employment income of $95,000 after claiming her RPP deduction of $4,500. Based on her RPP contributions of $4,500 and the matching contributions made by her employer, her employer reports a 2020 Pension adjustment of $9,000. During the same year, she also has taxable capital gains of $37,800, net rental income of $8,400, and pays spousal support of $16,400.
At the end of 2020, Ms. Sunshine has unused RRSP Deduction Room of $24,000. Also at this time, her RRSP contains undeducted contributions of $3,600. During 2021, she makes contributions to her RRSP of $17,000.
Required:
Determine Ms. Sunshine’s maximum RRSP deduction for 2021.
Assuming she deducts her maximum, determine the amount of any unused RRSP Deduction room that she will have available at the end of 2021, and indicate the amount of any undeducted contributions remaining at the end of 2021.
Show full calculations in your Excel.
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