Elton earned $120,000 working as a recording engineer last year. The total amount of his contribution into his defined contribution pension plan was $12,000. These contributions earned income of $600 during the year. Elton also owns a personal Registered Retirement Savings Plan (RRSP). Assuming he has no unused RRSP contribution room carry-forward amounts from previous years, how much money can Elton contribute to his RRSP account this year if the money purchase limit is $24,000?
Elton earned $120,000 working as a recording engineer last year. The total amount of his contribution into his defined contribution pension plan was $12,000. These contributions earned income of $600 during the year. Elton also owns a personal Registered Retirement Savings Plan (RRSP). Assuming he has no unused RRSP contribution room carry-forward amounts from previous years, how much money can Elton contribute to his RRSP account this year if the money purchase limit is $24,000?
Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses
Section: Chapter Questions
Problem 38P
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Transcribed Image Text:Elton earned $120,000 working as a recording engineer last year. The total amount
of his contribution into his defined contribution pension plan was $12,000. These
contributions earned income of $600 during the year. Elton also owns a personal
Registered Retirement Savings Plan (RRSP). Assuming he has no unused RRSP
contribution room carry-forward amounts from previous years, how much money can
Elton contribute to his RRSP account this year if the money purchase limit is
$24,000?
O $9,000
$9,600
$8,400
$21,000
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