Calculate the maximum contribution


In 2009, Jane Smith earned $67,500 in employment income, before any deductions. In January 2010, Jane received a 5% raise and therefore expects to earn $70,875 in 2010. In addition, she had taxable benefits from her employer of $2,500 in 2009 and $2,200 in 2010. Her ex-husband paid her a total of $24,000 in spousal support (alimony) in 2009 and is scheduled to pay $26,000 in 2010. In 2009 Jane also received $12,800 in rental payments ($7,400 net rental income after related expenses) for renting her basement. She did not increase the rent for 2010. Jane's home business earned net income of $4,200 in 2009 and is expected to earn $8,400 in 2010. On the T4 slip that Jane received from her employer in February 2010 it states that her 2009 pension adjustment was $3,300 and her unused contribution room was $16,500. Jane expects to have the same pension adjustment for 2010. Jane is a member of her union at work and paid $100 per month in union dues in 2009. No change to the fees are expected for 2010. The maximum RRSP limit for 2009 was $21,000 and is $22,000 for 2010.

Required:

Calculate the maximum contribution that Jane could make to her RRSP in 2010. Ignore the allowable over-contribution amount.

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Finance Basics: Calculate the maximum contribution
Reference No:- TGS043952

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