Your earnings for the year are $42 000. How much of an RRSP contribution can you make?
A)$5670
B)$4200
C)$7560
D)Insufficient information

Question

Quizplus · Accepted Answer

The maximum RRSP contribution limit is based on your income for the previous year. For the 2021 tax year, the maximum contribution limit is 18% of your earned income in 2020, up to a maximum of $27,830. Therefore, 18% of $42,000 is $7,560.

Your Earnings for the Year Are $42 000