As of December 31, 2020, Mrs. Mary Barth has worked for her current employer for 37 years. On this date she retires and, in recognition of her devoted service, her employer pays her a retiring allowance of $85,000. Her employer has never sponsored an RPP or DPSP. What is the maximum deductible contribution that Mrs. Barth can make to her RRSP as a result of receiving this retiring allowance?

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The Answer of As of December 31, 2020, Mrs. Mary Barth has worked for her current employer for 37 years. On this date she retires and, in recognition of her devoted service, her employer pays her a retiring allowance of $85,000. Her employer has never sponsored an RPP or DPSP. What is the maximum deductible contribution that Mrs. Barth can make to her RRSP as a result of receiving this retiring allowance?