Jean and Dan both work. Each earns a salary of $51,000, but only Jean is a member of a registered pension plan. Both she and her employer contribute 2 percent of her gross salary to a defined contribution pension plan. Jean has no unused RRSP room carried forward as she has maxed out her RRSP each year. Dan has $15,000 of unused RRSP contribution room carried forward showing on his Notice of Assessment. Calculate the maximum RRSP contribution that each can make this year.
Jean and Dan both work. Each earns a salary of $51,000, but only Jean is a member of a registered pension plan. Both she and her employer contribute 2 percent of her gross salary to a defined contribution pension plan. Jean has no unused RRSP room carried forward as she has maxed out her RRSP each year. Dan has $15,000 of unused RRSP contribution room carried forward showing on his Notice of Assessment. Calculate the maximum RRSP contribution that each can make this year.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Jean and Dan both work. Each earns a salary of $51,000, but only Jean is a member of a registered pension plan. Both she and her employer contribute 2 percent of her gross salary to a defined contribution pension plan. Jean has no unused RRSP room carried forward as she has maxed out her RRSP each year. Dan has $15,000 of unused RRSP contribution room carried forward showing on his Notice of Assessment. Calculate the maximum RRSP contribution that each can make this year.
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