How much can she contribute to her own RRSP

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Reference no: EM132789301

Questions -

Q1. a) Mark earned $85,000 in 2019 and has unused contribution room of $21,500 carried over from previous years. His employer paid $6,800 into his defined contribution pension plan last year, and he also contributed $3,400. If he decides to invest $8,500 to his wife's RRSP, what is the most he can contribute into his own RRSP in 2020?

b) Mark's wife Gina looks after their young child and earned $42,000 in 2019 while working part-time. How much can she contribute to her own RRSP in 2020 after her husband makes the $8,500 contribution? Explain your answer.

Q2. a) Linda established a RRIF in November 2020, which contained assets worth $900,000. The total value of the assets in the RRIF on January 1, 2021 is $925,000. What are the minimum withdrawals that she must make from her RRIF in 2020 and 2021 if she turned 68 years old in October 2020?

b) Why might she have chosen to purchase an annuity last year instead of establishing a RRIF? Provide two advantages of an annuity over a RRIF.

Reference no: EM132789301

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